Michael was driving back to the office from his off-site construction job on Friday. He had put in a long week and just wanted to go home. But a text from Robert back in the office reminded him to enter his weekly mileage-the accountants needed to finish the company's total fleet expenses for its quarterly income statement-and the performance evaluation meeting was on Monday. Michael was frustrated that his weekend was now going to be delayed because of this data entry business. He wondered why Robert couldn't just use the fuel cost for the income statement. In the end, Michael complied with Robert's request and input his mileage information. Michael's mileage was added to the other vehicles' mileage information, with the quarterly totals listed below. Total fleet expenses on the income statement are a combination of the five costs shown here. 8888 Q1 Q2 Q3 Q4 Vehicle Insurance $1,700 1,700 1.700 1,700 Registration Fees Fuel $1.100 $2,700 1,100 3,000 1,100 2,600 1,100 3,200 Depreciation (Shed & Vehicles) $5,100 5,100 5,100 5,100 Vehicle Maintenance Miles Driven $2.565 27,000 2,610 30,000 2,354 26,000 2,828 32,000

Ethics and the Manager Tom Kemper is the controller of the Wichita manufacturing facility of Prudhom Enterprises. Inc. The annual cost control report is one of the many reports that must be filed with corporate headquarters and is due at corporate headquarters shortly after the beginning of the New Year. Kemper does not like putting work off to the last minute, so just before Christmas he prepared a preliminary draft of the cost control report. Some adjustments would later be required for transactions that occur between Christmas and New Year’s Day. A copy of the preliminary draft report, which Kemper completed on December 21, follows: Melissa Ilianovitch, the general manager at the Wichita facility, asked to see a copy of the preliminary draft report. Kemper carried a copy of the report to her office where the following discussion took place: Ilianovitch: Wow! Almost all of the variances on the report are unfavorable. The only favorable variances are for supervisory salaries and…

Tom Kemper is the controller of the Wichita manufacturing facility of Prudhom Enterprises, Inc. The annual cost control report is one of the many reports that must be filed with corporate headquarters and is due at corporate headquarters shortly after the beginning of the New Year. Kemper does not like putting work off to the last minute, so just before Christmas he prepared a preliminary draft of the cost control report. Some adjustments would later be required for transactions that occur between Christmas and New Year’s Day. A copy of the preliminary draft report, which Kemper completed on December 21, follows: Wichita Manufacturing FacilityCost Control ReportDecember 21 Preliminary Draft   ActualResults FlexibleBudget SpendingVariances Labor-hours 18,000 18,000   Direct labor $ 326,000 $ 324,000 $  2,000 U Power 19,750 18,000 1,750 U Supplies 105,000 99,000 6,000 U Equipment depreciation 343,000 332,000 11,000 U…

You are a trainee accountant in your second year of training within a small practice. A more senior trainee has been on sick leave, and you are due to go on study leave. You have been told by your manager that, before you go on leave, you must complete some complicated reconciliation work. The deadline suggested appears unrealistic, given the complexity of the work. You feel that you are not sufficiently experienced to complete the work alone. You would need additional supervision to complete it to the required standard, and your manager appears unable to offer the necessary support. If you try to complete the work within the proposed timeframe but fail to meet the expected quality, you could face repercussions on your return from study leave. You feel slightly intimidated by your manager, and also feel pressure to do what you can for the practice in what are challenging times. Question: Integrity Can you be open and honest about the situation? Would it be right to attempt to complete…