ECONOMICS

Detailed explanation-1: -Formula to calculate standard costs Materials cost = market price per unit x total number of units. Manufacturing overhead = fixed overhead + (variable manufacturing overhead x total number of units)

Detailed explanation-2: -Under the Standard Costing System, which of the following actions is true about the cost variance? Explanation: The real cost of material cost, direct labor, and administration to produce a unit of product is known as actual cost. Variance is the difference between the actual and standard costs.

Detailed explanation-3: -It may be calculated as follows : LMV = (RSH-AH) x SR Where, Revised Standard Hour (RSH) = Total Actual Hour/ Total standard hour X actual hour.

Detailed explanation-4: -Labor variance focuses specifically on working rates given the actual amount of hours worked and is calculated with the following formula: (Actual Hours x Actual Rate)-(Actual Hours x Standard Rate).