Wall Corporation, which produces commercial safes, has provided the following data: Budgeted production 9,300 safes Standard machine-hours per safe 8.0 machine-hours Standard supplies cost $8.60 per machine-hour Actual production 9,500 safes Actual machine-hours 76,360 machine-hours Actual supplies cost $706,566 Supplies cost is an element of variable manufacturing overhead. The variable overhead efficiency variance for supplies is closest to:
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.
Wall Corporation, which produces commercial safes, has provided the following data:
| Budgeted production | 9,300 | safes |
| Standard machine-hours per safe | 8.0 | machine-hours |
| $8.60 | per machine-hour | |
| Actual production | 9,500 | safes |
| Actual machine-hours | 76,360 | machine-hours |
| Actual supplies cost | $706,566 |
Supplies cost is an element of variable manufacturing
The variable overhead efficiency variance for supplies is closest to:
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