Tina Company manufactures pans. Below is the information related to its direct material costs: Standard amount of hours per pan 1.9 Standard cost per hour $15.1 Actual amount of hours per pan 2.2 Actual cost per hour $16.7 Actual number of pans produced and sold 2,401 What is Tina’s direct labor spending variance is $_________
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.
Tina Company manufactures pans. Below is the information related to its direct material
Standard amount of hours per pan 1.9
Standard cost per hour $15.1
Actual amount of hours per pan 2.2
Actual cost per hour $16.7
Actual number of pans produced and sold 2,401
What is Tina’s direct labor spending variance is $_________
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