Cost Control and Management Practices at Intel

• Values:

• Total Overhead Costs: $40,000,000
• Standard Hours Allowed: 150,000 hours
• Actual Hours Worked: 160,000 hours
• Variable Overhead Rate: $6 per hour
• Requirements:

0. Calculate the variable overhead spending and efficiency variances for Intel.
1. Analyze the variances and their implications for cost management.
2. Discuss how variance analysis aids in decision-making at Intel.
3. Recommend measures to enhance cost control practices at Intel.