The Janesky Company has collected data on the manufacture of 6,473 robot grippers last month. The breakdown of total costs is shown below. They now need to plan for future months. Units sold last month 6,473 Direct materials $142,853 Direct labor $379,071 Manufacturing variable overhead $267,425 Selling and administrative costs $211,977 What is the break even quantity for a price of $382?
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 Janesky Company has collected data on the manufacture of 6,473 robot grippers last month. The breakdown of total costs is shown below. They now need to plan for future months.
| Units sold last month | 6,473 |
| Direct materials | $142,853 |
| Direct labor | $379,071 |
| Manufacturing variable |
$267,425 |
| Selling and administrative costs | $211,977 |
What is the break even quantity for a price of $382?
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