nt Company installs solar panels on residential houses. The standard material cost for Type-C house is P1,250 based on 1,000 units at a cost of P1.25 each. During April, Ant Company installed solar panels at accost of P1.20 per unit, and a total cost of P26,400. What is the material price 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.
Ant Company installs solar panels on residential houses. The
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