Standard Costing and Variance Analysis at Apple Inc.

• Values:

• Standard Cost per Unit: $100
• Actual Cost per Unit: $110
• Budgeted Production: 10,000 units
• Actual Production: 9,500 units
• Requirements:

0. Calculate the materials price variance.
1. Compute the labor efficiency variance.
2. Discuss how standard costing helps Apple Inc. in cost control.
3. Recommend actions to improve labor efficiency based on variance analysis.