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Omega Manufacturing Company produces furniture. The standard cost for producing one unit of furniture is as follows: Direct Materials: SAR 150 Direct Labor: SAR 80

Omega Manufacturing Company produces furniture. The standard cost for producing one unit of furniture is as follows:

  • Direct Materials: SAR 150
  • Direct Labor: SAR 80
  • Variable Overhead: SAR 30 During August 2024, the company produced 700 units of furniture. The actual costs incurred were:
  • Direct Materials: SAR 110,000
  • Direct Labor: SAR 60,000
  • Variable Overhead: SAR 25,000 Calculate the direct material, direct labor, and variable overhead cost variances. Provide explanations for the variances and suggest possible actions for management.

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