You are required to design an inventory management on manufacturing 1200 units of inventories (products) in TWO (2) stages (life cycle) including the forecasting of the duration or time required and the total production cost (Direct materials (DM), Direct Labor (DL), Direct expenses (DE) and Overhead expenses (OH).

Prepare a columnar table showing the forecasted (standard) and actual costs having at least two favorable in stage 1 (DM & DL) and 2 (DE & OH) adverse variances.

Explain the possible reasons for the variances in the point no.5 in the requirements for the project. (Actual production days is 30 same as forecasted).

1. Standard Production (Budgeted for whole project) Cost per unit are as follows: -

	Cost elements (Total for 2 stages)	$
1	Direct Material	50
2	Direct labor	20
3	Direct Expenses	20
4	Overhead	10

2. Requirements of the assignment are as below: -

1.	Scheduling	Gantt chart	Starts & Complete
2.	Resourcing	MRP (MPS) on Cost elements	TWO (2) Stages
3.	Budgeting (costs).	Std. Costs (As provided)	Total Budgeted costs. (Standard).
4.	Close out (results).	Performance (Evaluation)	Results, Std. & Actual (Costs). Favorable / Adverse. Profitability (under or over) in each cost elements.
5.	Summary & Reports (Strength /Weakness)	All cost elements	Production & Communication Efficiency.