Siemens AG manufactures medical imaging equipment using job costing. In March 2038, the company incurs the following costs for a new MRI machine project:

• Direct Material Costs: $10,000,000
• Direct Labor Costs: $8,000,000 (80,000 hours)
• Overhead Costs: $4,000,000

Requirements:

• Track and allocate labor costs using time-driven activity-based costing (TDABC).
• Calculate the total cost of the project.
• Perform a variance analysis for labor and overhead costs.
• Prepare a cost reconciliation statement.
• Analyze the efficiency of labor utilization and suggest improvements.