General Motors implements standard costing for its vehicle production. In October 2038, the company incurs the following costs:

• Standard Costs: $30,000,000
• Actual Costs: $32,000,000

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 performance of the production department.