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Justifying unfavorable direct labor efficiency variance

Ron LaTulip oversees projects for ACE Construction Company. Recently, the company's controller sent him a performance report regarding the construction of the Campus Highlands Apartment Complex, a project that LaTulip supervised. Included in the report was an unfavorable direct labor efficiency variance of $1,900 for roof structures.

What types of information does LaTulip need to analyze before he can respond to this report?

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In order to properly respond to the Performance Report that shows unfavorable direct labor efficiency variance of $1,900 for roof structures, in a project that Ron LaTulip supervised, Ron must conduct proper analysis including the root cause for the variance, as well as any long-term and short-term benefits/savings (if any) that ...

Solution Summary

Ron LaTulip oversees projects for ACE Construction Company. Recently, the company's controller sent him a performance report regarding the construction of the Campus Highlands Apartment Complex, a project that LaTulip supervised. Included in the report was an unfavorable direct labor efficiency variance of $1,900 for roof structures.

What types of information does LaTulip need to analyze before he can respond to this report?

$2.19