You are given the following historical production data on a tank turret assembly: Per unit costs: Direct Material $160,000 Direct Labor $30per labor hour Variable Overhead $20per Machine hour Additional information about the production process follows: What is the time needed to produce the 8 th tank using the incremental unit-time method? 4,335 hours None of the these 5,100 hours 3,685 hours
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.
You are given the following historical production data on a tank turret assembly:
Per unit costs:
Direct Material $160,000
Direct Labor $30per labor hour
Variable
Additional information about the production process follows:
What is the time needed to produce the 8 th tank using the incremental unit-time method?
4,335 hours
None of the these
5,100 hours
3,685 hours
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