Budgeting and Variance Analysis at Rolls-Royce

Requirements:

1. Develop a budget and perform variance analysis for Rolls-Royce's luxury SUV production, comparing actual costs to budgeted amounts.

Cost Category	Budgeted Costs ($)	Actual Costs ($)
Direct Materials	50,000,000	55,000,000
Direct Labor	20,000,000	22,000,000
Manufacturing Overhead	30,000,000	32,000,000

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