Tipton Company manufactures shirts. During June​, Tipton made 1,200 shirts and gathered the following additional​ data:   Direct materials cost standard $6.00 per yard of fabric Direct materials efficiency standard 1.50 yards per shirt Actual amount of fabric purchased and used 1,680 yards Actual cost of fabric purchased and used $10,500 Direct labor cost standard $15.00 per DLHr Direct labor efficiency standard 2.00 DLHr per shirt Actual amount of direct labor hours 2,520 DLHr Actual cost of direct labor $36,540   10. Calculate the direct labor cost variance.   Select the​ formula, then enter the amounts and compute the cost variance for direct labor and identify whether the variance is favorable​ (F) or unfavorable​ (U).   (   -   ) ×   = Direct Labor Cost Variance (   -   ) ×   =       11. Calculate the direct labor efficiency variance.   Select the​ formula, then enter the amounts and compute the efficiency variance for direct labor and identify whether the variance is favorable​ (F) or unfavorable​ (U).   (   -   ) ×   = Direct Labor Efficiency Variance (   -   ) ×   =     12. Calculate the total direct labor variance and identify whether the variance is favorable or unfavorable.   The total direct labor variance is

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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.