1. Iota Technology

Scenario: Variance Analysis

Data:

• Standard Cost per Unit: $100
• Actual Production: 8,000 units
• Actual Costs: $820,000
• Standard Production: 10,000 units

Requirements:

1. Calculate the Direct Materials Price and Quantity Variances for Iota Technology.
2. Calculate the Direct Labor Rate and Efficiency Variances.
3. Compute the Manufacturing Overhead Spending and Efficiency Variances.
4. Discuss the implications of variance analysis on COGS and cost control.
5. Recommend strategies to improve cost performance based on variance analysis.