Quality Motor Company is an auto repair shop that uses standards to control its labor time and lau motor tune-up is given below: Motor tune-up Standard Hours 2.50 Standard Rate $25.00 Labor rate variance Labor spending variance The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop supervisor recal that 50 tune-ups were completed during the week, and the controller recalls the following variance data relating to tune-ups: Standard Cost $ 62.50 $150 F $ 200 U

Q: OCF analysis

A: Operating Cashflow Analysis  = Net Income + Depreciation and Amortization- Net Working capital

Q: Patrick Inc. makes industrial solvents. Budgeted direct labor hours for the first 3 months of the…

A: Budgets are used to estimate a future projections so as to help in making informed decisions.

Q: Identify each cost below as variable (V), fixed (F), or mixed (M), relative to units sold. Explain…

A: Variable cost is the cost that varies with the changes in output. Fixed cost is the cost that is…

Q: Describe about the LIFO and FIFO method.

A:

Q: Define value chain.

A: Value Chain: Value Chain is the combination of activities including all the costs to do such…

Q: Describe WACC and its components.

A: WACC: The weighted average cost of capital (WACC) is a computation of   cost of capitalof a company…

Q: Explain NAREIT Index?

A: NAREIT Index Rate: It implies the compound dividend yield which is communicated as far as a yearly…

Q: What is data mining?

A:

Q: Explain an example of internal users.

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: What is the client-server model?

A: Client Server model: A client-server model can be defined as the architecture of distributed…

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.