2 no Question Requirement: Compute the following: (i) Material price Purchase variance (ii) Material price usage variance (iii) Material Quantity variance (iv) Material total variance (v) Labor rate variance (vi) Labor efficiency variance (vii) Labor total variance (viii) Variable Spending variance. (ix) Variable Efficiency variance (x) Variable total 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.
2 no Question Requirement: Compute the following:
(i) Material price Purchase variance
(ii) Material price usage variance
(iii) Material Quantity variance
(iv) Material total variance
(v) Labor rate variance
(vi) Labor efficiency variance
(vii) Labor total variance
(viii) Variable Spending variance.
(ix) Variable Efficiency variance
(x) Variable total variance
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