You recently received the following note from the production supervisor of the company where you aap) Somes

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You recently received the following note from the production supervisor of the company where you aap) Somes serve as controller. “I don’t understand these crazy variable-overhead efficiency variances. My employ- Efficiency Variance ees are very careful in their use of electricity and manufacturing supplies, and we use very little indirect (LO 1,5)

labor. What are we supposed to do?”

Required.

Write a brief memo responding to the production supervisor’s concern.

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Cost Management Strategies For Business Decisions

ISBN: 12

4th Edition

Authors: Ronald Hilton, Michael Maher, Frank Selto

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