Complete this question by entering your answers in the tabs below.Required 1 Required 2Compute the direct labor efficiency variance for December. Was this variance favorable or unfavorable? (Round your finalanswer to nearest whole dollar amount.)Direct-labor efficiency variance< Required 1Required 2 > 4At a recent seminar you attended, the invited speaker was discussing some of the advantages and disadvantages of standard costs interms of evaluating performance and motivating goal-congruent behavior on the part of employees. One criticism of standard costs inparticular caught your attention: The use of conventional standard costs may not provide appropriate incentives for improvementsneeded to compete effectively with world-class organizations. The speaker then discussed so-called continuous-improvementstandard costs. Such standards embody systematically lower costs over time. For example, on a monthly basis, it might be appropriateto budget a 1.0% reduction in per-unit direct labor cost.Assume that the standard wage rate into the foreseeable future is $26 per hour. Assume, too, that the budgeted labor-hour standardfor October of the current year is 1.90 hours and that this standard is reduced each month by 1%. During December of the current yearthe company produced 9,000 units of XL-10, using 16,800 direct labor hours. The actual wage rate per hour in December was $30.00.Required:1. Prepare a table that contains the standard labor-hour requirement per unit and standard direct labor cost per unit for the 4 months,October through January.2. Compute the direct labor efficiency variance for December. Was this variance favorable or unfavorable?Complete this question by entering your answers in the tabs below.Required 1 Required 2Prepare a table that contains the standard labor-hour requirement per unit and standard direct labor cost per unit for the 4months, October through January. (Do not round intermediate calculations. Round your "Standard Direct Labor Cost/Unit"answers to 2 decimal places and "Standard Labor-Hour Requirement/Unit" answers to 5 decimal places.)MonthOctoberNovemberDecemberJanuaryStandard Labor-HourRequirement/Unithour per unithour per unithour per unithour per unitStandardDirect LaborCost/Unit< Required 1Required 2 >

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Description: Complete this question by entering your answers in the tabs below.Required 1 Required 2Compute the direct labor efficiency variance for December. Was this variance favorable or unfavorable? (Round your finalanswer to nearest whole dollar amount.)Dir

1.MonthPrevious StandardReductionNew Standard(hr./unit)Standard Direct Labor…

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Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the direct labor efficiency variance for December. Was this variance favorable or unfavorable? (Round your final answer to nearest whole dollar amount.) Direct-labor efficiency variance < Required 1 Required 2 >

Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the direct labor efficiency variance for December. Was this variance favorable or unfavorable? (Round your final answer to nearest whole dollar amount.) Direct-labor efficiency variance < Required 1 Required 2 >

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 1TIF: Aaron McKinney is a cost accountant for Majik Systems Inc. Martin Dodd, Vice President of Marketing,...

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2. What are some possible drawbacks to using standard costs that Sarah might consider? a. Standards limit operating improvements because employees may be discouraged from improving beyond the standards. b. Standards may become “stale” in a dynamic manufacturing environment. c. Employees may focus only on efficiency improvement and their own operations rather than considering the larger objectives of the organization. d. Since standards are impossible to attain, they are a distraction from the work at hand. e. Since standards never change, they do not reflect reality.
Consultant Frank Alvarez recently commented that the mostcommon error made by his clients is ignoring opportunitycosts associated with business decisions. The costs Alvarezwas referring to are:a. Benefits foregone by selecting one course of actionover another.b. The out-of-pocket costs of implementing a particularbusiness decision.c. Costs that make future opportunities possible.d. Costs that have made past opportunities possible.
2. What are some possible drawbacks to using standard costs that Sarah might consider? a. Standards limit operating improvements because employees may be discouraged from improving beyond the standards. b. Standards may become “stale” in a dynamic manufacturing environment. c. Employees may focus only on efficiency improvement and their own operations rather than considering the larger objectives of the organization. d. Since standards are impossible to attain, they are a distraction from the work at hand. e. Since standards never change, they do not reflect reality. Answers a, b and c b, c and d c, d and e a, d and e b, d and e
hi, could you please provide resources and sources for me for the following (the case study is following these questions) For the following case situation, address the following issues in short essay format Identify the ethical dilemma- the planned increase in productivity to reduce variable costs and increase the contribution margin ratio Identify and analyze primary and secondary issues related to this ethical dilemma and impact on various stakeholders Analyze the ethical alternatives Analyze alternative resolutions to this ethical dilemma, the impact on various stakeholders, and the reasons specific stakeholders prefer each alternative Resolution of the ethical dilemma George Hawkins is the controller of Okie Auto, Inc., which manufactures automobile parts at several plants in Oklahoma, and is a subsidiary of a national firm. Okie has had disappointing ﬁnancial performance in recent years, because of pressure for lower selling prices. Corporate headquarters has threatened to close…
Aaron McKinney is a cost accountant for Majik Systems Inc. Martin Dodd, Vice President of Marketing, has asked Aaron to meet with representatives of Majik Systems major competitor to discuss product cost data. Martin indicates that the sharing of these data will enable Majik Systems to determine a fair and equitable price for its products. Would it be ethical for Aaron to attend the meeting and share the relevant cost data? Explain your answer.
Which of the following statements are false? SELECT ALL THAT APPLY a. One of the dangers of allocating common fixed costs to a product line is that such allocations can make the line appear less profitable than it really is. b. A new fixed cost that must be paid if a special offer is accepted is not relevant in making the decision. c. A cost that will be incurred regardless of which course of action a manager takes is relevant to the manager's decision. d. Your Company is considering replacing Machine X. The original cost of Machine X is not relevant to this decision.
Explain with an example why managers find it difficult to adopt a decision alternative even when the relevance cost analysis shows the superiority of this decision alternative to maximize operating income over other decision alternatives. What might the company do to reduce the pressure on management and decrease the ethical conflict?
Discuss how allocation of customer-related overhead cost can lead to better decision making within firms with reference to the case below. ‘An insurance company, A-Insure Limited, decided to use CPA to identify profitable and non-profitable customers after it grew concerned about the poor financial performance of one of its policy options. A-Insure collected customer data through original policy proposal forms which were stored electronically in a customer database. It was able to conduct a complex cross correlation between known cost drivers and the demographic and other characteristics of policy holders. The cost drivers were: • commission payments to financial advisers who sold the policy • early surrender of the policy by the policy holder • changing of bank details and consequent chasing of missed premiums • responding to customer queries. The analysis identified that the policy was unprofitable when sold to recently retired clients but was profitable when sold to other client…
2. Which of the following statements is false? (You may select more than one answer.)a. The planning horizon for discretionary fixed costs is longer than the planninghorizon for committed fixed costs.b. Discretionary fixed costs can be cut in the short term if necessary, while committed fixed costs cannot be cut for short periods of time.c. As companies increasingly rely on knowledge workers, the labor cost associated withemploying these workers is often committed fixed as opposed to discretionary.d. A mixed cost contains both committed fixed and discretionary elements.
Which of the following is not a criticism of using ROI as the only performance measure? 16 Multiple Cholce Ask It may Incentivize short-term decisions at the expense of long-term planning It may Incentivize employees to act in ways that are consistent with the overall goals and objectives of the organization. It may Incentlvize decistons that are effective at the divislon-level, but not necessartly at the enterprise-level It may be too rellant on subjective or arbitrary allocations of capital.
Complete the following statements with one of the terms listed here: You may use a term more than once and some terms may not be used at all. Differential Costs Irrelevant Costs Controllable Costs Marginal Costs Fixed Costs Average Cost Uncontrollable Costs Sunk Costs Variable Costs 1. For decision-making purposes, costs that do not differ between alternatives are 2. Costs that have already been incurred are called 3. Managers cannot influence .........in the short run. 4. Total stay constant over a wide range of production volumes. 5. The. action. is the difference in cost between two alternative courses of 6. The product's is the cost of making one more unit. Total costs decrease when production volume decreases. 7. A product's and ............ not the product's should be used to forecast total costs at different production volumes.
Q5) ABC costing helps the organization decreases costs associated with good decisions and keep pace with technological changes. Select one: True False