pharoah company expects to produce 1,207,200 units of product xxin 2022. montly production is expected to range from 76,000 to 118,000 units. budgeted variable manufactoring cost per unit are direct materials $3, direct labour $7, and overhead$10,. budgetd fixed manufactoring cost per unit for depreciation are $4 and for supervision are $1. prepare a fexible manufactoring budget for the relevant range value using 21,000 units increments
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
pharoah company expects to produce 1,207,200 units of product xxin 2022. montly production is expected to range from 76,000 to 118,000 units. budgeted variable manufactoring cost per unit are direct materials $3, direct labour $7, and overhead$10,. budgetd fixed manufactoring cost per unit for
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