If the actual fixed costs total $ 167000 with the actual number of units produced equal to 120 , and the budgeted fixed costs were $ 162000 and the budgeted units to be produced are 150 , and the hours per unit are 4 and total hours are 600 . What is the fixed costs rate variance , production volume variance the flexible budget variance and the over / under allocated fixed manufacturing overhead variance ? Indicate whether the variances are favourable or unfavourable .
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.
QUESTIONS If the actual fixed costs total $ 167000 with the actual number of units produced equal to 120 , and the budgeted fixed costs were $ 162000 and the budgeted units to be produced are 150 , and the hours per unit are 4 and total hours are 600 . What is the fixed costs rate variance , production volume variance the flexible
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