Yang’s standard labor cost of producing one unit of Product One is 1.7 hours at a rate of $11.1 per hour. During September, 1,558 hours were incurred at a cost of $12.7 per hour to produce 1,299 units of Product One. what is Yang’s direct labor efficiency variance
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.
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what is Yang’s direct labor efficiency variance
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