Budgeting and Variance Analysis at Ford

Requirements:

1. Develop a budget and perform variance analysis for Ford's F-150 truck production, comparing actual costs to budgeted amounts.

Cost Category	Budgeted Costs ($)	Actual Costs ($)
Direct Materials	25,000,000	28,000,000
Direct Labor	10,000,000	12,000,000
Manufacturing Overhead	15,000,000	16,500,000

• Calculate the direct materials price and quantity variances for Ford's F-150 trucks.
• Evaluate the labor efficiency and rate variances for Ford's assembly line.
• Recommend corrective actions based on variance analysis to improve cost control and operational efficiency at Ford.