Blossom Corporation manufactures a single product. Monthly production costs incurred in the manufacturing process are shown below for the production of 3,000 units. Direct materials Direct labor Utilities Property taxes Indirect labor Supervisory salaries Maintenance Depreciation (straight-line) $7,508 18,287 2,100 1,001 4,505 1,902 1,100 2,402
Blossom Corporation manufactures a single product. Monthly production costs incurred in the manufacturing process are shown below for the production of 3,000 units. Direct materials Direct labor Utilities Property taxes Indirect labor Supervisory salaries Maintenance Depreciation (straight-line) $7,508 18,287 2,100 1,001 4,505 1,902 1,100 2,402
Chapter1: Financial Statements And Business Decisions
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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.
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Q. 2 (b1)
Transcribed Image Text:Blossom Corporation manufactures a single product. Monthly production costs incurred in the manufacturing process are shown
below for the production of 3,000 units.
Direct materials
Direct labor
Utilities
Property taxes
Indirect labor
Supervisory salaries
Maintenance
Depreciation (straight-line)
$7,508
18,287
2,100
1,001
4,505
1,902
1,100
2,402
Transcribed Image Text:Calculate unit variable cost, unit variable cost for utilities and unit variable cost for maintenance. Exclude mixed costs in the
calculation for unit variable cost. (Round answers to 2 decimal places e.g. 2.25.)
Variable cost per unit (exclude variable cost for utilities and maintenance)
Variable cost per unit for utilities
Variable cost per unit for maintenance
$
$
$
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