ABB variance analysis Required:

Consider the following actual activity cost data for the Handy 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 39.20 Assembly & testing labor used 48.70 Packaging & stocking labor used 9.40 Other production activities Actual Batch level activities Materials handling 1000 Product level activities Production supervision 35,000 Depreciation of equipment 24,000 Customer level activities Product customisation Facility-level activities Central management 22,000 Business services 6,000 Engineering services 5,000 Space occupancy 20,000 Selling & distribution 25,000