Cost Control and Management Practices at Intel

• Values:

• Total Overhead Costs: $25,000,000
• Standard Hours Allowed: 100,000 hours
• Actual Hours Worked: 110,000 hours
• Variable Overhead Rate: $5 per hour
• Requirements:

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