Rozema Inc. produces chemicals for large biotech companies. It has the following data for manufacturing overhead costs during August: Actual costs incurred Costs allocated to products Flexible budget: Budgeted input allowed for actual output produced x budgeted rate Actual input x budgeted rate Required Complete the table below. 1. Rate variance 2. Efficiency variance 3. Production-volume variance Variable $34,500 $30,000 $30,000 $31,600 4. Flexible-budget variance 5. Underallocated (overallocated) manufacturing overhead Fixed $13,500 $14,800 $16,000 $16,000 Variable Fixed

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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.