Required: Gleason Guitars produces acoustic guitars. The table below contains budget and actual information for the month of June: Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e.. zero variance). Direct Material Direct Labor Variable Overhead Fixed Overhead Total Manufacturing Costs Actual Costs 445 units $ $ 17,700 28,400 10.450 13,700 70,250 Spending Variance. Flexible Budget 445 units Volume Variance Master Budget 200 units $ $ 16,200 24,200 10,200 12,100 62,700

Q: Actual output Actual variable overhead Actual fixed overhead Actual machine time Standard cost and…

A: Variable overhead efficiency variance measures how efficiently machine hours or labor hours are…

Q: Required: Gleason Guitars produces acoustic guitars. The table below contains budget and actual…

A: Budgeting is a valuable tool for organizations, individuals, and firms as they want to take control…

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Q: (b) Calculate the materials variance, and the price and quantity variances, assuming the purchase…

A: DIRECT MATERIALS COST VARIANCEDirect materials cost variance is the difference between the actual…

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Q: Pittman Framing's cost formula for its supplies cost is $1110 per month plus $11 per frame. For the…

A: The following formula used to calculate spending variance as follows:-  Spending variiance = Actual…

Q: Required: Gleason Guitars produces acoustic guitars. The table below contains budget and actual…

A: The budgets are prepared to estimate the costs of production to be incurred during the period. The…

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Q: How do I verify that Harlows actual cost figures are correct?

A: Total Cost=Direct material+Direct labor+Variable Overhead+Fixed Overhead

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Q: Required: Gleason Guitars produces acoustic guitars. The table below contains budget and actual…

A: The flexible budget is prepared for actual level of production. The planning budget is prepared for…

Q: Required: Gleason Guitars produces acoustic guitars. The table below contains budget and actual…

A: The spending variance is the difference between actual results and flexible budget data. The…

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Q: Get the Answer

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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.