In the production of a car, if direct materials are $2,000, direct labor $3,000, and factory overhead $1,500, what are my total manufacturing costs?
If I am computing a cost variance (variance means difference) against some target or base level, (actual variance to budget or actual variance to prior year, let's say) what might be driving that variance across the categories noted above?© BrainMass Inc. brainmass.com June 4, 2020, 12:04 am ad1c9bdddf
Direct Material $2000
Direct Labor $3000
Factory Overhead $1500
Total Manufacturing Costs $6500
In case of variance between the budgeted and actual results, the factors that drive the variance is different for ...
Discusses total manufacturing costs, and what is driving the variance across the categories.