Coca-Cola Company has the following budgeted and actual data for the production of 10,000 units:
•Budgeted cost per unit: $5 (material: $2, labor: $2, overhead: $1)
•Actual cost per unit: $5.50 (material: $2.20, labor: $2.10, overhead: $1.20)
Required:
1.Prepare a variance analysis report showing material, labor, and overhead variances.
2.Provide a brief explanation for each variance.