Weald Corporation manufactures Calculators. Each calculator requires 4 units of Part EZ52, which has a standard cost of Rs.1.45 per unit. During May, the company purchased 12,000 units of the part for a total of Rs.18,000. Also during May, the company manufactured 3,000 calculators, using 10,000 units of part EZ52. The direct materials purchases variance is computed when the materials are purchased. Calculate materials quantity variance during May, for part EZ52 was:
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.
question1 Weald Corporation manufactures Calculators. Each calculator requires 4 units of Part EZ52, which has a
Calculate materials quantity variance during May, for part EZ52 was:
question2: Casa Furniture manufactures chairs. The cost accounting system estimates
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A large hotel chain is currently expanding and has decided to decorate all new hotels using the new furniture. Casa is invited to submit a bid to the hotel chain. What per unit price will Casa most likely bid on this long-term order?
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