Project Total Variance Nathaniel Office 2500 18100 U Donaven Office 25850 F Zyion Office Quantity Total Variance 3200 32900 U 76850 F 4150 Actual Costs 222,400 281,350 300,000 Prepare a variance report for the purchasing department Standard Quantity Costs 2700 3500 4000 240,500 255,500 332,900
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.
Figure out what the total, price, and quantity variances are from the given information.
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