Implement standard costing for Amazon.com's fulfillment operations. Set standard costs for direct materials, direct labor, and variable overhead based on historical data and industry benchmarks. Compare actual costs incurred with standard costs and analyze any variances. Evaluate the effectiveness of standard costing as a performance measurement tool for Amazon's fulfillment centers.
Values:
•Standard Direct Materials Cost per Unit: $10
•Standard Direct Labor Cost per Unit: $5
•Standard Variable Overhead Cost per Unit: $3