Requirements1. Calculate direct materials cost and efficiency variances.2. Calculate direct labor cost and efficiency variances.3. Prepare journal entries to record the use of both materials and labor for March for the company.
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.
Grand Fender is a competitor of Pro Fender from Exercise E23-19. Grand Fender also uses a
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