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ABC Inc. budgeted $70,000 for direct material costs and $85,000 for direct labor costs for the production of 12,000 units. However, actual direct material costs

ABC Inc. budgeted $70,000 for direct material costs and $85,000 for direct labor costs for the production of 12,000 units. However, actual direct material costs amounted to $75,000, and actual direct labor costs were $90,000. Assess the direct material and direct labor cost variances separately, providing insights into cost control measures and operational efficiency improvement initiatives.

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