Standard Costing at General Motors

• Values:

• Standard Cost per Unit: $200
• Actual Cost per Unit: $220
• Planned Production: 1,000 units
• Actual Production: 900 units
• Requirements:

0. Calculate the direct material price variance and quantity variance for General Motors.
1. Analyze the variances and their implications for cost control and performance evaluation.
2. Discuss how standard costing helps in cost management at General Motors.
3. Recommend actions to address unfavorable variances at General Motors.