Standard Costing at Toyota

• Values:

• Standard Direct Materials Cost: $20 per unit
• Actual Direct Materials Cost: $22 per unit
• Standard Direct Labor Rate: $15 per hour
• Actual Direct Labor Rate: $18 per hour
• Requirements:

0. Calculate the direct materials price and quantity variances for Toyota.
1. Compute the direct labor rate and efficiency variances.
2. Discuss the advantages of using standard costing in the automotive manufacturing sector.
3. Recommend strategies to improve cost control using standard costing at Toyota.