Sharp Enterprises Inventories: March 1 March 31 Raw Material $18,000 $15,000 Work in process 9,000 6,000 Finished Goods 27,000 36,000 Additional information for March: Raw material purchased $42,000 Direct labor payroll 30,000 Direct labor rate per hour 7.50 Overhead rate per direct labor hour 10.00 Refer to Sharp Enterprises. For March, Cost of Goods Manufactured cost 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.
Sharp Enterprises
| Inventories: | March 1 | March 31 |
| Raw Material | $18,000 | $15,000 |
| Work in process | 9,000 | 6,000 |
| Finished Goods | 27,000 | 36,000 |
Additional information for March:
| Raw material purchased | $42,000 |
| Direct labor payroll | 30,000 |
| Direct labor rate per hour | 7.50 |
| 10.00 |
Refer to Sharp Enterprises. For March, Cost of Goods
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