• Performing a variance analysis for a manufacturing process, the following data is provided:

  Category	Actual ($)	Budgeted ($)
  Direct Materials	12,000	10,000
  Direct Labor	8,000	7,500
  Manufacturing Overhead	5,000	4,500

  Your requirements are as follows:

  • Calculate the total variance for each category.
  • Analyze the variances into price and efficiency components.
  • Present the analysis in a variance report format.
  • Include a paragraph discussing potential causes of each variance.
  • Provide recommendations for cost control based on the analysis.
  • Summarize the impact of variances on the company's profitability.