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Dominican University Labor Variance Calculation Accounting Questions

Dominican University Labor Variance Calculation Accounting Questions

Question Description

This time we let you put your manager hat on and “manage by exception”; based on our learning outcomes related to standards and variances. Each of you will be assigned one of the three businesses that we used to practice calculating materials and labor variances (see the Practice activity document included in this module). So for your assigned scenario, write a 100-200 word(professional-appearing, with acceptable spelling, grammar, etc.) discussion post in a new thread(include your name in the thread along with some sort of descriptive thread title), that fully describes:

  1. What you feel could have been the root cause of each of the variances, i.e., price and quantity if you were assigned a materials scenario (#1 or #2) or rate and efficiency if you were assigned the labor scenario (#3) AND…
  2. Based on your answers to 1) above, what would you, as a manager or owner, do about it? (Be veryspecific, not just “do better”!)

A score of 10 points will be earned if (and only if):

  • You post a substantive original post meeting the word requirements, appropriate specifics, plausibility, and include your name in the title of the thread (points will be deducted if not done) by Friday.
  • You clearly communicate what each type of variance could indicate, based on module learning outcomes.
  • You have determined a plausible original underlying reason for the variances (i.e., not just used the exact same reason already posted in someone else’s thread, and also not just something like “the variance is $200 because it is the difference between $1,600 and $1,800”). Also, we assume the standards themselves have been properly determined!

My scenario: Scenario #3 (labor in the CPA tax preparation business):

About 6-7 sentences

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