Tane, Inc. produces beads for jewelry making use. The following information summarizes production operations for June. The journal entry to record June production activities for direct material usage is: Direct materials used $54,000 Direct labor used 162,000 Predetermined overhead rate (based on direct labor) 140% Goods transferred to finished goods 434,000 Cost of goods sold 546,000 Credit sales 602,000
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.
Tane, Inc. produces beads for jewelry making use. The following information summarizes production operations for June. The
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