The following information pertains to ABC Co's 202x manufacturing operations: Standard direct labor hours/unit is 2; Actual direct labor hours is 10,500; Number of units produced is 5,000; standard variable OH/ Hr is P3 and Actual variable OH is P28,000. The company's variable overhead efficiency variance must be
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 following information pertains to ABC Co's 202x manufacturing
operations: Standard direct labor hours/unit is 2; Actual direct labor hours is
10,500; Number of units produced is 5,000; standard variable OH/ Hr is P3 and Actual variable OH is P28,000. The company's variable
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