Standard Costing and Performance Evaluation at Toyota Motor Corporation

Requirements:

1. Develop standard costs for Toyota Motor Corporation's Camry and Corolla models, incorporating direct materials, direct labor, and variable overhead costs.

Cost Element	Camry ($)	Corolla ($)
Direct Materials	3,000	2,500
Direct Labor	1,500	1,200
Variable Overhead	500	400

2. Calculate the labor and materials price and efficiency variances for both vehicle models based on actual and standard costs.

Vehicle Model	Labor Variance ($)	Materials Variance ($)
Camry	2,000 favorable	1,500 unfavorable
Corolla	1,200 favorable	800 favorable

3. Perform a comprehensive performance evaluation by comparing actual costs against standard costs for production volumes.
4. Recommend operational improvements and cost control measures based on the variance analysis to enhance profitability.