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ABC Manufacturing sets its budgeted production at 10,000 units for the upcoming quarter. The standard cost per unit is $50 for direct materials, $20 for
ABC Manufacturing sets its budgeted production at 10,000 units for the upcoming quarter. The standard cost per unit is $50 for direct materials, $20 for direct labor, and $30 for manufacturing overhead. Actual production for the quarter is 9,800 units. Calculate the following:
a) Total standard cost and total actual cost for the quarter.
b) Total budgeted cost and total actual cost for the quarter.
c) Calculate the material, labor, and overhead variances.
d) Analyze the variances and provide possible explanations for any significant differences.Step by Step Solution
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