General Electric Company implements standard costing for manufacturing equipment. In February 2038, the company incurs the following costs:

• Standard Costs: $8,000,000
• Actual Costs: $8,500,000

Requirements:

• Calculate the cost variances (material, labor, and overhead).
• Analyze the reasons for the variances.
• Prepare a variance analysis report.
• Recommend corrective actions to address the variances.
• Evaluate the effectiveness of standard costing as a cost control tool.