Your firm has the following manufacturing figures: Prime cost 112,000 Factory overheads 9,000 Opening work-in-progress 12,400 Factory cost of goods completed 114,000 Closing work-in-progress is $?
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.
Your firm has the following manufacturing figures:
Prime cost 112,000
Factory overheads 9,000
Opening work-in-progress 12,400
Closing work-in-progress is $?
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