The Assignment:

  • Part 1: Calculate all materials and labor variances in a spreadsheet by using a program like Excel. Be sure to include price, quantity, wage rate, and labor efficiency variances.
  • Part 2: Prepare a memo to your subordinate, using a program like Word.
    • Summarize and analyze the actual costs in relation to the standard costs incurred for the month.
    • Ask for clarification of any variances that need to be investigated.

Be sure to include whether alternatives exist for the future of the organization and explain how the results of the variance analysis might influence those alternatives.

 
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