Unific Manufacturing Inc. is a biscuit manufacturer and produces different types of biscuits. With the management of the company determined to identify different labor variances, it has prepared the following data: Particulars Amount The standard time for producing Chocolate biscuits 8,000 hours Standard Wage Rate $3 per hour Number of workers employed 50 Number of working days 25 Hours worked per day by each worker 8 hours Total wage bill footed $50,000 Using the information mentioned above, you are required to calculate: Labor rate variance and Labor efficiency variance The labor rate and labor efficiency variances will be:

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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.