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How to handle making the same item number in two mfg IOs with different costs?

Summary:

A company wants to be making the same item number in two mfg IOs and then wants to transfer the items to a single distribution IO.

Content (required):

A company wants to be making the same item number in two mfg IOs and then wants to transfer the items to a single distribution IO with direct interorg transfers. All IOs are using standard costing. The mfg cost of the item is different in each mfg IO but the distribution IO has a single fixed std cost. How can that difference in cost be handled/accounted for? Would some variance account be charged? As a thought, could we force the std cost in the 2nd IO to be the same as the 1st IO and take the mfg cost difference as WO variance?

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