There were no beginning inventories. 1. Compute direct manufacturing labor variances for July. 2. Compute the actual pounds of direct materials used in production in July. 3. Calculate the actual price per pound of direct materials purchased. 4. Calculate the direct materials price variance. Required Units completed Direct material purchases Cost of direct material purchases 5,600 units 230,000 pounds $759,000 Actual direct manufacturing labor-hours Actual direct manufacturing labor cost Direct materials efficiency variance 43,000 hours S623,500 $ 1,200 F
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.
Direct manufacturing labor and direct materials variances, missing data. (CMA, heavily adapted) Oyster Bay Suroards manufactures berglass suroards. The
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