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Walmart Inc. Scenario: Variance Analysis Data: Walmart Inc. budgeted $500,000 for direct labor costs based on 50,000 hours at $10 per hour. Actual direct labor

  1. Walmart Inc.

Scenario: Variance Analysis

Data: Walmart Inc. budgeted $500,000 for direct labor costs based on 50,000 hours at $10 per hour. Actual direct labor costs amounted to $550,000 for 55,000 hours worked.

Requirements:

  1. Calculate the direct labor rate variance and efficiency variance.
  2. Determine whether the variances are favorable or unfavorable.
  3. Discuss the causes of direct labor variances at Walmart Inc.
  4. Analyze the impact of direct labor variances on Walmart Inc.'s cost control.
  5. Evaluate Walmart Inc.'s budgeting and cost control processes.

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