Standard Costing at Google

Values:

• Standard Material Cost: $10 per unit
• Actual Material Cost: $9.50 per unit
• Standard Labor Cost: $30 per hour
• Actual Labor Cost: $32 per hour

Requirements:

1. Calculate the material price variance.
2. Calculate the labor rate variance.
3. Analyze the variances and discuss possible causes.
4. Recommend actions to address adverse variances.