Required information Use the following information for the Quick Study below. (Algo) [The following information applies to the questions displayed below.] Alvarez Company for the current period shows a $30,000 favorable volume variance and a $61,200 unfavorable controllable variance. Standard overhead applied for the period is $222,000. QS 23-17 (Algo) Components of overhead variance LO P4 a. What is the actual total overhead cost incurred for the period? b. What is the total overhead variance and is it favorable or unfavorable? a. Actual total overhead i b. Total overhead variance

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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.