Procter & Gamble Co. uses standard costing to evaluate performance and identify areas for improvement....
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Accounting
Procter & Gamble Co. uses standard costing to evaluate performance and identify areas for improvement. The cost accountant compared actual costs to standard costs and calculated variances in direct materials, direct labor, and overhead. Actual direct materials cost amounted to $1,500,000, compared to standard direct materials cost of $1,400,000. Actual direct labor cost was $1,200,000, while standard direct labor cost was $1,100,000. Actual overhead cost totaled $800,000, whereas standard overhead cost was $750,000. Analyze the variances and provide recommendations for corrective actions to address any unfavorable variances.
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