Nestl reviews standard costing for a product: Standard cost $120/unit (materials $40/unit, labor $35/unit, overhead $45/unit), actual cost $130/unit. Requirements: Apply the revenue recognition principle

1. Nestlé reviews standard costing for a product: Standard cost $120/unit (materials $40/unit, labor $35/unit, overhead $45/unit), actual cost $130/unit.
   • Requirements:
     • Apply the revenue recognition principle to determine when Nestlé should recognize revenue from product sales.
     • Calculate the material price and quantity variances.
     • Prepare a variance analysis report incorporating revenue recognition principles.
     • Recommend corrective actions to address unfavorable variances while adhering to revenue recognition guidelines.
     • Discuss the impact of revenue recognition on financial reporting and decision-making based on standard costing analysis.