[The following information applies to the questions displayed below.] AirPro Corporation reports the following for this period. Actual total overhead. Standard overhead applied Budgeted (flexible) variable overhead rate Budgeted fixed overhead Predicted activity level Actual activity level Enter your answers in the tabs below. Required A Required B $ 28,475 $ 31,930 Actual total overhead Standard overhead applied Total overhead variance $ 2.10 per unit $ 11,700 11,700 units. 10,300 units Compute the total overhead variance and identify it as favorable or unfavorable. Total Overhead 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.
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