Explain what could have happened on a b c d how the above

Reference no: EM13600370

The plant manager decides that what is needed is an objective appraisal of what should be done. He hires June Collins of Collins and Collins, CPAs. June recommends that the Charlotte plant should use standard cost variance analysis. While not all three product managers agree that this is the best course of action the plant manager makes the final decision and asks June to perform the analysis. June asks that the three product managers aggregate their production information. The following schedule is the result of the request.
Variance Analysis

Variance Stated as Variance
(Recycled material)
Materials Price Variance Per ounce price Unfavorable
Materials Quantity Variance Ounce per unit Favorable

(Non-recycled material)
Material Price Variance Price per package Favorable
Material Quantity Variance Usage per unit Unfavorable

Labor Rate Variance Per hour Favorable
Labor Efficiency Variance Time per unit Favorable

Required:

1. Explain what could have happened on A, B, C, D, how the above variances could explain the following:

A) Scrap Material decreased(recycled material)
B)Return Orders increased (Non-recycled material)
C) Ordering cost for non-recycled material increased
D) Average Unit Cost decreased Loss of customers

2. Write a short memo explaining how management could use variance analysis to improve productivity

Reference no: EM13600370

Questions Cloud

Imagine managerial accounting did not exist suggest what : imagine managerial accounting did not exist. suggest what would or would not occur and describe the implications with a

George masonry accepted a four-month 10 interest 1800 note : george masonry accepted a four-month 10 interest 1800 note from earth tones on july 1 2008. the entire balance is

Huey concrete co pours concrete slabs for single-family : huey concrete co. pours concrete slabs for single-family dwellings. tudor construction co which operates outside hueys

Stronger satellites accepted a five-month 7 interest rate : stronger satellites accepted a five-month 7 interest rate 6000 note from one of its customers on june 1 2008. the

Explain what could have happened on a b c d how the above : the plant manager decides that what is needed is an objective appraisal of what should be done. he hires june collins

Calcium cardboard supply agreed to accept a four-month 10 : calcium cardboard supply agreed to accept a four-month 10 interest rate 12000 note from knox inc. on april 1 2008. how

Mcnamee juices sells products in the health-food industry : mcnamee juices sells products in the health-food industry. mcnamee sold johnny mac merchandise for 5000 on account.

Diane uses the lower of cost or market rule for its : diane company a retailer and wholesaler of national brand-name household lighting and fixtures purchases its

Sininsky mining inc has just discovered two new mining : sininsky mining inc. has just discovered two new mining sites for iron ore. geologists and engineers have come up with

User Account

All Pages