Using the format dicaksed in Exthbit 21.10 and Exhibit 21.11 of your textbook or formulas solve for the following variance. You may use EXCEL WORD. Picture of Paper, or enter your work into Camvas. I will cover how to do this during the Zoom recorded lecture for that week or during a recording Standard Quantities and Costs: DM (.25 it per unit at $10 per foot)=$2.50 DL(5hour per unit at 520 per hour)=$10.00 Total Dirsct Cost per unit=$12.50 Additional information: During the period, MK, Inc, badgeted to produce 2.000 widgets, it actually produced 1.900 widgets. K Actual Quantibes, and Costs: DM purchased & used = 505 feet at $9.80 Dthours used +990 hours at $19.75 Required: Calculate the following variances using the matrix format mentioned above or formulas: -Price Variance - Quantity Variancer - Total DM Vanance - Rate Variarice - Eificiency Variance - Total DL Variance
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.
Using the format dicaksed in Exthbit 21.10 and Exhibit 21.11 of your textbook or formulas solve for the following variance. You may use EXCEL WORD. Picture of Paper, or enter your work into Camvas. I will cover how to do this during the Zoom recorded lecture for that week or during a recording
Standard Quantities and Costs:
DM (.25 it per unit at $10 per foot)=$2.50
DL(5hour per unit at 520 per hour)=$10.00
Total Dirsct Cost per unit=$12.50
Additional information:
During the period, MK, Inc, badgeted to produce 2.000 widgets, it actually produced 1.900 widgets. K
Actual Quantibes, and Costs:
DM purchased & used = 505 feet at $9.80
Dthours used +990 hours at $19.75
Required: Calculate the following variances using the matrix format mentioned above or formulas:
-Price Variance
- Quantity Variancer
- Total DM Vanance
- Rate Variarice
- Eificiency Variance
- Total DL Variance
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