Identify the cases that will be investigated

Assignment Help Applied Statistics

Reference no: EM13949187

Ellerbee Cable Company uses a standard costing system to control the labor costs associated with cable installation and repair. Ellerbee uses the following rule to determine whether the labor efficiency variance should be investigated: a labor efficiency variance will be investigated when the amount exceeds the lesser of $2,100 or 5% of standard cost. The company collected reports for the past four months to pro- vide the following information:

Month	LEV	Standard Labor Cost
1	$2,280 F	$45,000
2	2,000 U	50,000
3	1,900 F	48,000
4	3,050 U	60,000

Required

1. Using the rule provided, identify the cases that will be investigated.

2. Suppose investigation reveals that the cause of an unfavorable labor efficiency variance is the hiring of a number of new workers who worked more slowly while they were being trained. Who is responsible? What corrective action would likely be taken?

Reference no: EM13949187

Questions Cloud

Characteristics of the text make unbelieved : It has to preview the summary ,the evaluation and the analysisSummary

Create a vs 2008 asp .net web site with a masterpage : The MasterPage will display a company name selected by you. Add server controls to the MasterPage that allow the user to navigate between the Web Forms in the Web site.

Establishes your argument, asserts your thesis : The purpose of the second draft is to build upon the first draft that you have already written and to move your drafting process forward so that you can add a body, conclusion, and abstract to the paper, making it a cohesive and whole academic pap..

State hypotheses and identify claim, find critical value : A real estate agent found that there is a significant relationship among the number of acres on a farm ( x 1), the number of rooms in the farmhouses ( x 2 ) , and the selling price in ten thousands ( y ) of farms in a specific area. The regression..

Identify the cases that will be investigated : Using the rule provided, identify the cases that will be investigated. Who is responsible? What corrective action would likely be taken?

Milano pizza is a small neighborhood pizzeria : Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take-out and free home delivery services.

Applications of rydberg constant in a detailed manner : Applications of Rydberg constant in a detailed manner

Prepare a query that lists each course name and its cost : Prepare a query that lists the cost per student for each class. Assume maximum capacity and that you will schedule two half-day classes on the same day to take full advantage of HOTT's per day pricing schedule.

Components that are used to create an ethernet network : You are trying to describe the Ethernet as the most common local area networking standard for your coworkers, friends, or family members. Discuss the following: Discuss the most common components that are used to create an Ethernet network

User Account

All Pages