Advance managerial Accounting question.

Project Details: Dear Pupils, by now you know how standards are assigned to material, labor and overheads. You have ample knowledge of carrying appropriate variance analysis for taking sound corrective actions to fulfill effective and efficiency of firm final goal. You are instructed to choose a hypothetical business of your choice and assign standards to production costs where you can add factors that are behind every standard you have assigned. Next step is you than make actual income statement and finally do variance analysis along with reconciliation under absorption costing and variable costing. Those groups who can beautifully construct the standards along with variance analysis and give sound and logical recommendations in case of favorable and unfavorable variances will be given more weightage of marks. In nut shell you have to follow the following steps: 1. Assign standards for production costs along with factors behind them. 2. Arrive at actual Income Statement for year of analysis. 3. Go through all Variance analysis (i.e., Material, labor, variable and fixed overhead, Sales Margin price and Sales Volume Margin Variances) 4. Make a reconciliation statement for your hypothetical business under Absorption costing