Sloan Company uses both standards and budgets. For the year, estimated production of Product X is 6,400 units. Total estimated costs for materials and labor are $23,900 and $48,600. What is the standard cost per unit for labor for product X? Round your answer 2 decimal places
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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Sloan Company uses both standards and budgets. For the year, estimated production of Product X is 6,400 units. Total estimated costs for materials and labor are $23,900 and $48,600. What is the standard cost per unit for labor for product X? Round your answer 2 decimal places |
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