The standard quantity allowed for the units produced during a period was 3800 pounds. The standard price was $2.50 per pound and the materials quantity variance was $425 favorable. Each unit uses 1 pound of materials. How many units were actually purchased and used during the period? O 3800 O 3630 O 9925 O 3970
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.
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