Standard Costing and Variance Analysis at Siemens

Requirements:

1. Develop standard costs for Siemens' industrial products, incorporating direct materials, direct labor, and variable overhead costs.

Cost Element	Product X ($)	Product Y ($)
Direct Materials	12,000	9,000
Direct Labor	6,000	4,500
Variable Overhead	2,400	1,800

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

Product	Labor Variance ($)	Materials Variance ($)
Product X	2,400 favorable	1,800 unfavorable
Product Y	1,800 favorable	1,200 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.