Understanding the following concepts, please complete response to assignment
Difference between a standard and a budget
Advantages of standard costs
Setting standard costs
Direct material and labor variances
Manufacturing overhead variances
Preparation of an income statement using a standard costing system
Balanced scorecard approach to evaluation
Standard Costs and Balanced Scorecard
IF you use any sources it must be included and in APA format. The length is determined by the approach you use; however, please be thorough.
At Camden Manufacturing Company, production workers in the Painting Department are paid on the basis of productivity. The labor time standard of a unit of production is established through periodic time studies conduct by the Lowery Management Department. In a time study, the actual time required to complete a specific task by a worker is observed. Allowances are then made for preparation time, rest periods, and clean-up time. Ron Orlano is one of several veterans in the Painting Department.
Ron is informed by Lowery Management that he will be used in the time study for the painting of a new product. The findings will be the basis for establishing the labor time standard for the next 6 months. During the test, Ron deliberately slows his normal work pace in an effort to obtain a labor time standard that will be easy to meet. Because it is a new product, the Lowery Management representative who conducted the test is unaware that Ron did not give the test his best effort.
Prepare a page response to the following:
1. Discuss who benefitted from Ron's actions.
2. Discuss who was harmed from Ron's actions.
3. Discuss whether or not Ron was ethical in the way he performed the study.
4. What measure(s) might the company take to obtain valid data from setting the labor time standard?
1. Discuss who benefited from Ron's actions.
The first person that benefited from Ron's actions was Ron himself. If the labor time standard of a unit is set at a higher time level than what it really takes Ron to do the work, then he can easily perform better than the standard time and again and claim higher wages than what he deserves. In addition, if the standard is set at a higher time level he can do the work normally at a much relaxed pace. Moreover if the other workers come to know that Ron was used for time study, then he would be respected by them for setting an easy labor time standard. He would become a hero with his co-workers (Lewis. B 1999).
The workers as a whole benefited from the action of Ron. Setting a lax labor time standard means that the other workers could work less and earn more; establishing a slack labor standard means that the other workers could work less and earn more. ...
Balanced Scorecard for Camden Manufacturing Co is discussed very comprehensively in this explanation..