Selected data for March for Irvington, Incorporated follows. The variable material sales activity variance is $23,40 Flexible budget based on actual sales of 10,010 units: Revenue Materials Labor Variable overhead Fixed costs (manufacturing and administrative) $ 305,080 101,400 79,040 52,000 41,200
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.
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