Starr Company shows the following information for the month. $ 81,000 Raw materials purchased on credit Direct materials used $ 55,400 $ 18,950 Direct labor used Overhead rate Prepare journal entries to record the following. 1. Raw materials purchased. 2. Direct materials used. 3. Direct labor used. 4. Applied overhead. View transaction list No View journal entry worksheet Transaction 125% of direct labor cost General Journal Debit Credit

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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.