Question
Alpha Corporation manufactures electronic gadgets. The standard direct material cost per unit is SAR 50, standard direct labor cost per unit is SAR 30, and
Alpha Corporation manufactures electronic gadgets. The standard direct material cost per unit is SAR 50, standard direct labor cost per unit is SAR 30, and standard variable overhead cost per unit is SAR 20. During June 2024, the company produced 1,000 units and incurred actual direct material costs of SAR 55,000, actual direct labor costs of SAR 30,000, and actual variable overhead costs of SAR 20,500. Calculate the direct material cost variance, direct labor cost variance, and variable overhead cost variance. Discuss the company's performance based on these variances.
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