Question

Flandro Company uses a standard cost system and sets predetermined overhead rates on the basis of direct labor-hours. The following data are taken from the company's budget for the current year:
(d) What effect, if any, does the choice of a denominator activity level have on unit standard costs? Is the volume variance a controllable variance from a spending point of view? Explain.

Answer 1

The Direct Materials standard cost is $13.20

The Direct Labor standard cost is $12.00

The Variable Manufacturing Overhead standard cost is $5.00

The Fixed manufacturing overhead standard cost is $11.80

Standard cost per unit- $ 42.00

The solution is in tabular form which is attached with this answer.

What is Variance

Variance is the process of evaluating the financial performance of your mission. fee variance compares your budget that was set before the project started and what was spent. this is calculated by using finding the difference among BCWP (Budgeted cost of work performed) and ACWP (actual cost of work performed.

Learn more about variance brainly.com/question/14116780

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