The direct labor standards for producing a unit of a product are two hours at Ph10 per hour. Budgeted production was 1,000 units. Actual production was 900 units and direct labor cost was Ph19,000 for 2,000 direct labor hours. The direct labor efficiency variance as? * Ph 1,000 favorable Ph 1,000 unfavorable Ph 2,000 favorable Ph 2,000 unfavorable
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.
The direct labor standards for producing a unit of a product are two hours at Ph10 per hour. Budgeted production was 1,000 units. Actual production was 900 units and direct labor cost was Ph19,000 for 2,000 direct labor hours. The direct labor efficiency variance as? *
Ph 1,000 favorable
Ph 1,000 unfavorable
Ph 2,000 favorable
Ph 2,000 unfavorable
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