What was the monthly expected production of customized lamps 21.05 that was used to determine the standard fixed overhead rate?
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.
Need help with 21.05
Month End
Actual Variable Overhead $ 1,161.00
Actual Fixed Overhead $ 40,873.45
Mary correctly completed the material variances for the lamp shades and the overhead variances. Her work is correct however, in reviewing her work the standards were crossed out. The total material price variance for the lamp shades purchased: $80.00 Unfavorable The variable overhead efficiency variance: $315.36 Unfavorable The variable OH spending variance: $232.20 Favorable The fixed OH volume (denominator) variance: $160.16 Unfavorable The fixed OH spending variance: $753.37 Unfavorable
| What was the monthly expected production of customized lamps | 21.05 | |||||||
| that was used to determine the standard fixed overhead rate? |
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