Production budget Junior Pro Striker 5,800 units 24,500 units Both rackets are produced in two departments, Forming and Assembly. The direct labor hours required for each racket are estimated as follows: Forming Department Assembly Department Junior Pro Striker 0.2 hour per unit 0.35 hour per unit 0.5 hour per unit 0.65 hour per unit The direct labor rate for each department is as follows: Forming Department Assembly Department $16 per hour $8 per hour Prepare the direct labor cost budget for March.
Production budget Junior Pro Striker 5,800 units 24,500 units Both rackets are produced in two departments, Forming and Assembly. The direct labor hours required for each racket are estimated as follows: Forming Department Assembly Department Junior Pro Striker 0.2 hour per unit 0.35 hour per unit 0.5 hour per unit 0.65 hour per unit The direct labor rate for each department is as follows: Forming Department Assembly Department $16 per hour $8 per hour Prepare the direct labor cost budget for March.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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.
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