Purchase Solution

Labor Variances and Accounting for Decision Making & Control

Not what you're looking for?

Ask Custom Question

12-15: Ed Koehler started Great Southern Furniture five years ago to assemble prefabricated bedroom furniture for large hotel chains. Hotel purchase furniture (beds, night stands, and chests of drawers) from manufacturers who ship the furniture to the hotels unassembled. Koehler sends a site supervisor and a small crew of employees to the hotel. The site supervisor first hires additional local employees to help assemble the furniture and then trains them. The locally hired employees along with the small crew of Great Southern Employees assemble the furniture at the hotel. This significantly reduces the shipping charges and damage to the furniture. Before sending a crew to the site, Koehler has a crew in his office assemble several sets to make sure there are no problems and also to estimate the expected time required to assemble the particular furniture.
The 500 room Hyatt opens in Tampa and Koehler sends a crew to assemble the 500 bedroom sets. He establishes that 4.5 hours are required to assemble one complete room and the estimated costs per our is $22. Upon completing the job, the crew reports they had total wages of $49,693 for 2,170 hours worked.
Required: Write a report evaluating the performance of the crew at the Hyatt in Tampa.

Purchase this Solution
Solution Summary

Computations needed plus a 123 word report evaluating the performance (interpreting the labor variance).

Solution provided by:
Carol Sargent, PhD
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
Recent Feedback
  • "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
  • "Thank, this is more clear to me now."
  • "Awesome job! "
  • "ty"
  • "Great Analysis, thank you so much"
Purchase this Solution
Free BrainMass Quizzes
Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Introduction to Finance

This quiz test introductory finance topics.

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

View More Free Quizzes
Related BrainMass Solutions

  • Accounting for Decision Making Control

    The expert examines accounting for decision making control.

  • Instructional Case: Estimating Learning-Curve Functions for

    487124 Instructional Case: Estimating Learning-Curve Functions for Managerial Planning, Control, and Decision-Making Planning and control in the decision making process. Review this article: Stout, David E and Juras, Paul E., (2009).

  • Estimating Learning-Curve Functions for Managerial Planning

    480103 Planning and control in the decision making process Stout, David E and Juras, Paul E., (2009). Instructional Case: Estimating Learning-Curve Functions for Managerial Planning, Control, and Decision-Making.

  • Budgeting is a usuful management tool used for decision making and control

    559836 Management Tool used for Decision Making and Control Budgeting is a useful management tool used for decision making and control.

  • Automobile Support Company

    To control costs through the calculation of variances and analysis; 2. Does not reflect the current costs of material, labor and overhead costs; 3.

  • Chapter 12 case 2: Rust Belt Mufflers

    458722 Accounting for decision making and control: Chapter 12 case 2: Rust Belt Mufflers Case 12-2 Rust Belt Mufflers Case 12-2 Rust Belt Mufflers A.

  • Standard Costs

    The accounting system was implemented because the manufacturing compensation is based on gross margin and so manufacturing would not want to reduce the gross margin for themselves for a marketing exercise and would want marketing to take the cost.

  • BA 510; Accounting for Decision Making & Control P12-11

    385030 BA 510; Accounting for Decision Making and Control 12-11: The standard cost sheet calls for 80 pounds of zinc per batch of 70 faucets. Zinc has a standard price of $5.10 per pound. One thousand pounds of zinc are purchased for $5,530.

  • Budgetary Variance Model

    Cost Management: Accounting & Control. USA: Cengage Learning. Jackson, S. R., Sawyers, R. B. & Jenkins, J. G. (2008). Managerial Accounting: A Focus on Ethical Decision Making. USA: Cengage Learning. Jiambalvo, J. (2007). Managerial Accounting.

  • BA 510; Accounting for Decision Making & Control 7e, p12-14

    385033 Accounting for Decision Making & Control 12-14: Flower City Cartridges (FCC) manufactures replacement cartridges for desktop printers. FCC uses standard costs within a job order cost system.

View More Related Solutions