Variance Analysis at Apple

• Values:

• Standard Cost per Unit: $100
• Actual Cost per Unit: $110
• Planned Production: 10,000 units
• Actual Production: 9,500 units
• Requirements:

0. Calculate the direct material price variance and quantity variance for Apple.
1. Analyze the variances and their implications for cost control.
2. Discuss the importance of variance analysis in performance evaluation.
3. Recommend strategies to minimize variances at Apple.