1. Company: Tau Electronics

Scenario: Standard Costing and Variance Analysis

Data:

• Standard Cost per Unit: $50
• Actual Cost per Unit: $55
• Units Produced: 10,000

Requirements:

1. Calculate the cost variance.
2. Determine the total variance.
3. Analyze the reasons for the variance.
4. Discuss the importance of standard costing in cost control.
5. Recommend corrective actions to address the variance.