Standard Costing at Samsung

Samsung is reviewing its material costs.

Values:

Cost Element	Standard Cost	Actual Cost
Material Cost	$20 per unit	$19.50 per unit
Labor Cost	$45 per hour	$46 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.