Feel soft Beauty cosmetics manufacturing company produces two products, Sunscreen and Moisturizer creams. The company gives the following information. Products Standard Quantity (Units) Standard Price ($) Actual Quantity (Units) Actual Price ($) Sunscreen 40 50 50 50 Moisturizer 60 40 60 45 Required to Calculate the following Feel soft Beauty cosmetics co. Material Price variance Material cost variance Material usage variance Explain the following variances. Sales mix variance Sales volume variance Explain the term divisional performance and explain any two common measures of divisional performance.
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.
Feel soft Beauty cosmetics manufacturing company produces two products, Sunscreen and Moisturizer creams. The company gives the following information.
|
Products |
Standard Quantity (Units) |
Standard Price ($) |
Actual Quantity (Units) |
Actual Price ($) |
|
Sunscreen |
40 |
50 |
50 |
50 |
|
Moisturizer |
60 |
40 |
60 |
45 |
Required to Calculate the following Feel soft Beauty cosmetics co.
- Material Price variance
- Material cost variance
- Material usage variance
- Explain the following variances.
- Sales mix variance
- Sales volume variance
- Explain the term divisional performance and explain any two common measures of divisional performance.
Step by step
Solved in 3 steps
- Explain the following variances. Sales mix variance Sales volume variance
- Explain the term divisional performance and explain any two common measures of divisional performance.
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