An electronics manufacturer sets standard costs for a product: Direct materials $20/unit, direct labor $15/unit, variable overhead $5/unit, fixed overhead $50,000. Actual production 8,000 units, actual costs incurred $260,000.

• Requirements:
  • Calculate the material, labor, and overhead variances using standard costing.
  • Analyze the causes of variances and recommend corrective actions.
  • Prepare a variance analysis report for management review.
  • Discuss the benefits of using standard costing in manufacturing settings.