Discussion Question

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


Student’s name
Professor’s name
Course title

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...

flag Report DMCA

Outstanding Job!!!!

Similar Questions
Hot Questions
Related Tags

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors