Sunland Company provides financial consulting and sells its own line of financial planners and budgeting products. The company has collected the following data for the next year's budgeted activity for a lead consultant and the supplies clerk. Consultants wages Benefits Related overhead Clerk's wages Benefits Related overhead Profit margin per hour Profit margin on materials Total estimated consulting hours Total estimated material costs $120000 30000 10000 $17000 5000 21000 $20 $32.00 $16.00. $30.48 $52.00 15 % 5000 The labor rate per hour for this consultant is $172000

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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.