Variance Analysis at Procter & Gamble

• Values:
  • Standard Cost per Unit: $80
  • Actual Cost per Unit: $85
  • Budgeted Production: 10,000 units
  • Actual Production: 9,500 units
• Requirements:

1. Calculate the materials price variance.
2. Compute the materials quantity variance.
3. Analyze the labor rate variance.
4. Discuss the implications of the variances on profitability and operations.