The related data of Wolverine Company: Purchases of raw materials P280,000 Direct labor cost 175,000 Selling costs (total) 80,000 Administrative costs (total) 67,500 Manufacturing overhead costs (total) 156,800 Raw materials inventory, beginning 37,900 Work in process inventory, beginning 12,000 Finished goods inventory, beginning 156,700 Raw materials inventory, ending 8,700 Work in process inventory, ending 10,880 Finished goods inventory, ending 127,900 How much are the raw materials charged to production?
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.
The related data of Wolverine Company:
Purchases of raw materials P280,000
Direct labor cost 175,000
Selling costs (total) 80,000
Administrative costs (total) 67,500
Raw materials inventory, beginning 37,900
Work in process inventory, beginning 12,000
Finished goods inventory, beginning 156,700
Raw materials inventory, ending 8,700
Work in process inventory, ending 10,880
Finished goods inventory, ending 127,900
How much are the raw materials charged to production?
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