For a processor model, Intel Corporation has set the following standard costs:

| Direct Materials | 5 units at $10 per unit | | Direct Labor | 2 hours at $25 per hour | | Variable Overhead| $20 per unit | | Fixed Overhead | $1.5 billion per year |

If 500,000 units were produced, calculate the total standard cost and the total actual cost incurred.

Required:

• Determine the direct materials price variance and quantity variance.
• Calculate the direct labor rate variance and efficiency variance.
• Analyze the variable overhead spending variance.
• Calculate the fixed overhead budget variance.