Walmart uses a standard costing system for its operations. The following standards and actual data are available for a particular product:

Standard Cost	Actual Cost
Direct Material: $3 per unit	Direct Material: $3.2 per unit
Direct Labor: $2 per unit	Direct Labor: $1.8 per unit
Overhead: $1.5 per unit	Overhead: $1.7 per unit

Additional Information:

• Standard quantity: 100,000 units
• Actual quantity: 95,000 units

Requirements:

1. Calculate the material, labor, and overhead variances.
2. Analyze the reasons for each variance.
3. Prepare a reconciliation of standard cost to actual cost.
4. Suggest measures to control variances in future.
5. Discuss the impact of variances on overall profitability.