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Analyze material, labor, and overhead variances and recommend corrective actions. Item Standard Cost per Unit Actual Cost per Unit Actual Production Direct materials $30 $32

Analyze material, labor, and overhead variances and recommend corrective actions.

Item

Standard Cost per Unit

Actual Cost per Unit

Actual Production

Direct materials

$30

$32

12,000 units

Direct labor

$20

$18

12,000 units

Variable overhead

$10

$11

12,000 units

Fixed overhead

$100,000

$105,000

-

Requirements:

Calculate the material price variance and quantity variance.

Calculate the labor rate variance and efficiency variance.

Calculate the variable overhead spending variance and efficiency variance.

Recommend corrective actions for each variance identified.

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