Ford Motor Company set the following standards for its vehicle manufacturing:

| Direct Materials | Quantity: 200 kg per unit | Price: $15 per kg | | Direct Labor | 20 hours per unit | Rate: $30 per hour| | Variable Overhead| $3,000 per unit | | Fixed Overhead | $700 million per year |

During the month, 8,000 units were produced, and actual costs were as follows:

Actual Costs	Amount ($)
Direct Materials	3 million
Direct Labor	1.2 billion
Variable Overhead	20 million
Fixed Overhead	600 million

Required:

• Calculate the direct materials price variance and quantity variance.
• Determine the direct labor rate variance and efficiency variance.
• Analyze the variable overhead spending variance.
• Calculate the total manufacturing overhead variance.
• Discuss actions management should take based on variance analysis.