Conduct a variance analysis for LMN Corporation by cost element using the following data:

Cost Element	Budgeted Amount ($)	Actual Amount ($)
Direct Materials	$50,000	$55,000
Direct Labor	$30,000	$28,000
Manufacturing Overhead	$40,000	$42,000

Requirements:

• Calculate the variance for each cost element.
• Analyze the variances into favorable and unfavorable components.
• Present the analysis in a detailed table format.
• Discuss potential reasons for budget variances and recommend corrective actions.