standard direct labour cost of Product Z is as follows: Four hours of grade B labour at £3 per hour is equal to £12 per unit of product Z. During period four, 900 units of Product Z were made, and the direct labour cost of grade C labour was £9,400 for 2,000 hours of work. What is the total direct labor 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.
The standard direct labour cost of Product Z is as follows: Four hours of grade B labour at £3 per hour is equal to £12 per unit of product Z. During period four, 900 units of Product Z were made, and the direct labour cost of grade C labour was £9,400 for 2,000 hours of work.
What is the total direct labor variance?
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Verdi plc’s budget for the first month of trading, during which production of 3,000 units and sales of 2,700 units are predicted, is as follows:
Variable productions costs £136,000; Fixed production costs £102,500; Selling price is £500 per unit.
The profit calculated on the absorption cost basis compared to the marginal cost basis will be?
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