Marshall Grocery Delivery Service reports the following information: Direct labor rate per hour $ 20 Non-materials related overhead per hour $ 25.80 Materials-related overhead 4% of Direct materials cost Target profit margin 20% what is t
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.
Marshall Grocery Delivery Service reports the following information:
Direct labor rate per hour | $ 20 | |
---|---|---|
Non-materials related |
$ 25.80 | |
Materials-related overhead | 4% | of Direct materials cost |
Target profit margin | 20% |
what is the materials markup?
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