1.As a CPA,one of your clients asks you whether his manufacturing company should include standard costs in their cost accounting system.List at least two reasons for including standard costs in your clients cost accounting system and two potential problems with including standard costs in the client's cost accounting system.

2.Southern Pecan Company grows and sells pecans.The company harvested10,000bags of pecans in May and sold everything that it harvested.The companys flexible budget for May was:

Bags sold	10,000
Revenue($10/bag)		$100,000
Expenses:
Bags($.50each)	$5,000
Pecan orchard maintenance	$10,000
Wages and salaries($2,400+$.50per bag)	$7,400
Shipping($.40per bag)	$4,000
Other expenses($1,000+$.45per bag)	$5,500
Total Expenses		$31,900
Net operating income		$68,100

The actual results for May were:

Bags sold	10,000
Revenue($10/bag)		$105,000
Expenses:
Bags($.50each)	$5,100
Pecan orchard maintenance	$9,000
Wages and salaries($2,400+$.50per bag)	$7,900
Shipping($.40per bag)	$5,000
Other expenses($1,000+$.45per bag)	$5,600
Total Expenses		$32,600
Net operating income		$72,400

Prepare a report detailing the companys revenue and spending variances of May.

3.

With the following information,compute the throughput time and the manufacturing cycle efficiency:

Wait time	12.0days
Inspection time	0.9days
Processing time	3.5days
Move time	0.2days
Queue time	2.0days

For problems,be sure to answer all questions and provide all requested information.

4.What are the"exceptions"that management by exception considers?How does consideration of these"exceptions"assist a business in evaluating its performance?