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ABC Corporation has multiple cost centers within its organization and is evaluating their performance using variance analysis. The company's manufacturing department incurred a favorable direct
ABC Corporation has multiple cost centers within its organization and is evaluating their performance using variance analysis. The company's manufacturing department incurred a favorable direct labor efficiency variance of $20,000. Discuss the factors that could have contributed to this variance and its implications for production planning and control. Additionally, explain how management can use variance analysis to identify areas of improvement and optimize operational performance.
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