A manufactured product has the following information for June. Standard Quantity and Cost 6 pounds @ $9 per pound. 3 DLH@ $16 per DLH 3 DLH @ $11 per DLH Direct materials. Direct labor Overhead Units manufactured = Actual Hours = Standard Hours = Actual Rate = Standard Rate Actual Results 46,700 pounds @ $9.10 per pound 22,700 hours @ $16.60 per hour $ 259,900 rcise 21-10 (Algo) Direct labor variances LO P3 pute the (1) direct labor rate variance and (2) direct labor efficiency variance. (Indicate the effect of each variance rable, unfavorable, or no variance. Round "Rate per hour" answers to 2 decimal places.) Actual Cost 7,700 units Standard Cost

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 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 t…