The Miramar company manufactures a product called snail which has the following standards per unit: Direct raw material 1 kilo a $ 3.50 Direct labor 30 minutes at $ 10 an hour During the month of May, 1,500 kilos of direct materials were purchased for $ 4,800. Of these 1,500 kilos, 1,250 kilos were used in production to produce 1,200 units of the snail product. Direct labor costs incurred during the month totaled $ 6,200 with a total of 625 hours worked. According to the problem select: Variation in MPD quantity,Price of MPD used Mod efficiency:,Variation in MPD ,price Real rate ,Variation in rate
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 Miramar company manufactures a product called snail which has the following standards per unit: Direct raw material 1 kilo a $ 3.50 Direct labor 30 minutes at $ 10 an hour During the month of May, 1,500 kilos of direct materials were purchased for $ 4,800. Of these 1,500 kilos, 1,250 kilos were used in production to produce 1,200 units of the snail product. Direct labor costs incurred during the month totaled $ 6,200 with a total of 625 hours worked. According to the problem select: Variation in MPD quantity,Price of MPD used Mod efficiency:,Variation in MPD ,price Real rate ,Variation in rate
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