Questions & AnswersManagerial Accounting

b) The following outcomes were noted for Juniper Ltd using a...

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b) The following outcomes were noted for Juniper Ltd using a...

b) The following outcomes were noted for Juniper Ltd using a standard costing and variance 

    analysis system.

                                                       Adverse                                     Favorable

                                                                   £                                                   £

Variances__________________________________________________________________

 

Material Price                                          3 500

Material Usage                                                                                               8 300

Wage Rate                                                                                                   44 000

Labour Efficiency                                    52 000

 

    Material price variance - adverse

    Material usage variance - favorable 

    Wage rate variance -favorable

    Labour efficiency variance- adverse 

 

Juniper operates a standard costing system. Assess the performance of the Production Manager using the figures above and identify and critically evaluate the possible causes of the variances noted above for Juniper Ltd. You can make assumptions on the businesses operations in explaining possible causes.

 

The report should include critical evaluation of the models and concepts proposed outlining their merits and limitations. You may incorporate logical assumptions with regard to the company and use numerical examples to illustrate the models and concepts that you propose to adopt

                                                                   

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Answered by KidInternetKingfisher14 on coursehero.com

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