ABB variance analysis Required:

Consider the following actual activity cost data for the Excel IV phone for the first quarter of Year 10. Prepare a variance analysis similar to Figure 5.19 for this product’s first quarter production results. Explain how these variances might have arisen.

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Unit level activities Actual Parts & components used 81.20 Assembly & testing labor used 76.60 Packaging & stocking labor used 27.00 Other production activities Actual Batch level activities Materials handling 500 Product level activities Production supervision 35,000 Depreciation of equipment 25,000 Customer-level activities Product customisation 5,000