Question
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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