Bo Vonderweidt is the production manager of the Louisville Plant, a division of the large corporation,

(LO 6) Plantimum, Inc. He has complained several times to the corporate office that the cost reports used to evaluate his plant are misleading. Vonderweidt states, “I know how to get good quality product out.

Over a number of years, I’ve even cut materials used to do it. The cost reports don’t show any of this;

they’re always negative, no matter what I do. There’s no way I can win with accounting or the people at headquarters who use these reports.”

A copy of the latest report is shown here.

LOUISVILLE PLANT é

Cost Report For the Month of April (in thousands)

Budgeted Cost Actual Cost Excess Cost Dineetuniatenial-wrtsce: actaea cree. $ 390 $ 465 $75 Directlabors. nteateres txeueiret meet eens Sd) 540 (30)

OVEMMEA rs.