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A company's standard direct labor cost to produce one unit of a product is 13 hours at $18 per hour. During a period, 12,000 units
A company's standard direct labor cost to produce one unit of a product is 13 hours at $18 per hour. During a period, 12,000 units were produced with actual direct labor costs amounting to $198,000. Analyze the labor rate variance and labor efficiency variance separately, utilizing detailed analysis to identify the root causes of variance. Evaluate the impact of wage fluctuations, training programs, and production scheduling on labor cost variances and develop strategies for cost optimization and variance reduction.
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