Telemark Production’s manufacturing costs for July when production was 2,000 units appears below: Direct materials $10 per unit Factory depreciation $16,000 Variable overhead 10,000 Direct labor 4,000 Factory supervisory salaries 11,600 Other fixed factory costs 3,000 Instructions How much is the flexible budget manufacturing cost amount for a month when 2,200 units are produced?
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.
Telemark Production’s manufacturing costs for July when production was 2,000 units appears below:
Direct materials $10 per unit
Factory
Variable
Direct labor 4,000
Factory supervisory salaries 11,600
Other fixed
Instructions
How much is the flexible budget manufacturing cost amount for a month when 2,200 units are produced?
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