Required information [The following information applies to the questions displayed below] BatCo makes baseball bats. Each bat requires 1.00 pounds of wood at $18 per pound and 0.25 direct labor hour at $30 per hour. Overhead is assigned at the rate of $60 per direct labor hour. Assume the actual cost to manufacture 120 bats is $5,700.00. Compute the total cost variance and identify it as favorable or unfavorable. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) Actual cost Budgeted-standard cost Total cost variance

Q: Acme Inc. has the following information available: Actual price paid for material $0.90 Standard…

A: Material Price Variance (MPV) MPV = (SP - AP) x Actual Quantity. Where,  SP = Standard Price = $1 AP…

Q: Big Dog Company, a manufacturer of dog food, produces its product in 1,000-bag batches. The standard…

A: >Variances refer to the difference between Standard Cost allowed and Actual Cost incurred.…

Q: ToolTime has a standard of 1.5 pounds of materials per unit, at P4 per pound. In producing 2,000…

A: Total material variance = (standard quantity *standard price) - (Actual quantity*Actual price)…

Q: Assume the following: • The standard labor rate per hour is $17.00. • The standard labor-hours…

A: Direct labor variance is the difference between standard direct labor cost for actual production and…

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.