The production cost for a waterproof phone case is $5 per unit and fixed costs are $27,110 per month. How much is the favorable or unfavorable variance if 5,216 units were produced for a total of $65,014? Enter a favorable variance as a positive number. Enter an unfavorable variable as a negative number with a - sign. Do not use parentheses. Round to the whole dollar, no decimal places.
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 production cost for a waterproof phone case is $5 per unit and fixed costs are $27,110 per month. How much is the favorable or unfavorable variance if 5,216 units were produced for a total of $65,014? Enter a favorable variance as a positive number. Enter an unfavorable variable as a negative number with a - sign. Do not use parentheses. Round to the whole dollar, no decimal places.
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