Discussion Question

Anonymous
timer Asked: Jan 5th, 2018
account_balance_wallet $5

Question description

Using Standard Costing Information to Improve Efficiency

As head plant manager, overseeing the entire production cycle, you have received a report from your accounting staff showing the results of your standard costing practices, shown below:

  • Materials Price Variance – 80,000 Favorable
  • Materials Quantity Variance – 60,000 Unfavorable
  • Labor Rate Variance – 75,000 Unfavorable
  • Labor Efficiency Variance – 90,000 Unfavorable

It is your job to bring these variances more in line so that the plant runs more efficiently and effectively.

What are the first steps you take for corrective action, to whom do you address this variance problem, and why do you feel that they should be held responsible?

Provide specific details to support your opinion in your response. Take time to read and comment on the responses of others

Tutor Answer

Nicholas I
School: Rice University

Hi, kindly find attached

Surname1

Student’s name
Professor’s name
Course title
Date

Efficiency Improvement Using Standard Costing Information
The first measure for corrective action for the unfavorable variances is to analyze how
significant the variance is to the total cost as stated in the budget. The next step the plant
manager should take is to do an accurate identification and selection of performance measures;
this meas...

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Review

Anonymous
Outstanding Job!!!!

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