1.

Compute the price and efficiency variances for the three categories of direct materials and for direct manufacturing labor in July 2017

2.

Describe the types of actions the employees at the Savannah plant may have taken to reduce the accuracy of the standards set by the outside consultant. Why would employees take those actions? Is this behavior ethical?

3.

If Wood does nothing about the standard costs, will his behavior violate any of the standards of ethical conduct for practitioners described in the IMA Statement of Ethical Professional Practice?

4.

What actions should Wood take?

Question Help 7-47 (similar to Saab Se manufactures GPS devices for a chain of retail stores Ok the icon to view information about the Magellan XS) The budgeted and actual amounts for Magelan Xs for July 2017 were as follows methicon to view the budgeted and actual amounts) (Click the icon to view additional information) Read the Requirement 1. Compute the price and efficiency variances for the three categories of direct materials and for deed manufacturing labor in July 2017 Begin by calculating the the prior and efficiency variance for the each category of deact me (Do not found intermediary cations Round remount you enter the input cel to the nearest whole doll Label ahvenances tvorable (F) or unfavorable ( For new balance, make sure to enter in the propriate field of the voice is zero, do not wc bel Antreviation Oly) Actual Price Actual input ty* Emiciency Flexible Costs incurred Variante Budgeted Price Variance Budget July 2017 More info More info the most popular model the Magellan X8, mbled in a dedicated facity in Savannah, Georgia Saabis keenly aware of the competitive treat from smartphone that use Google Maps and has put in a standard cost system to manage production of the Magellan Show implemented in time system some Savannah facility operates with no inventory of any kind Producing the Magellan X5 involves combining navigation system (imported trom plant in Dresden fed prio), an LCD screen made of polarized ass, and a casing developed from specially plastic The control of the Savannah plant. Troy Wood, is disappointed with the and costing system in place. The standards were developed on the basis of y done by an outside consult the start of the year Wood points out that he has rely on a significant unfavorable variance under this system. He Observer even of the present level of output workers seem to have a substantial amount of idle time. Moreover, he concerned that the production supervisor, Jake Kade is ware of the issue but is willing to lighten the standards because the currentionen benchmarks make his performance look good Print Done Print Done No from any liat or enter any number in the input fields and then click Check Answer INI o P7-47 (similar to) Question Help Saab Sant manufactures GPS devices for a chain of retail stores Ce the icon to view information about the MaglianXS) The touted and actual amounts for MagelanXS for July 2017 were as follows Click the icon to view the budgnted and actual amount Click the icon to view itonal Information Read the Requirement 1. Computer the price and officiency variances for the three categorine of direct materials and for direct manufacturing inbor in July 2017 Begin by calculating the the price and efficiency variances for the sech Category of direct materials. Do not found intermediary calculations. Round the amount you to the input to the rest wideolar Gabel auch varannan favorabile for hvortle (u For variance with a so balance, make sure to enter For in the appropriate field of the 200, do not act label Abbreviation und Olyquanta Actual Actuat input ty ceny Flexible Costs incurred Variance Budgeted Price Variance Budget Navigation system Data Table Faguruments 1 Actual Amounts Budgeted Amounts 4.100 2 Magetan Sund Navigation scout Navigation 4,837 $47.00 1045 Compute the price and efficiency variance for the three categories of direct materials and for det manufacturing labor in Aly 2017 Describe the types of action the employees at the Savannah lant may have to reduce the accuracy of the Mandards set by the outside constant Why would loyees take those actions? Is this behavior Nicat Wood does noring about the standard costs will have any of the standards of ethical conduct for practitioners derbed in the IMA Statement of Ethical Professional Practice? What ons houd Woodlaka? Wood can be benchmarking information about the estimated cost of Saat competitors such as Garminand Tom Tom from the Compet Inne In (C) Discuss the pros and cons of using the cu nformation to compute the various introduirement 4 351.250 1025 $13.954 4.40 $50,00 2460 $ 13,537 Ounces of specialty rectang labor costs Dered mange 530,157 2485 CH Print Done Print 1000 Data Table - Budgeted Amounts Actual Amounts 4,100 4,900 $ 83,353 $ 91,903 4,837 Magellan XS units produced Navigation systems cost Navigation systems Polarized glass cost Sheets of polarized glass used Plastic casing cost Ounces of specialty plastic used Direct manufacturing labor costs Direct manufacturing labor-hours 4,387 $ 51,250 1,025 $ 47,025 1,045 $ 13,284 $ 13,537 4,428 4,668 $ 59,040 $ 60,137 2,460 2,485 Question Help 7-47 (similar to Saab Se manufactures GPS devices for a chain of retail stores Ok the icon to view information about the Magellan XS) The budgeted and actual amounts for Magelan Xs for July 2017 were as follows methicon to view the budgeted and actual amounts) (Click the icon to view additional information) Read the Requirement 1. Compute the price and efficiency variances for the three categories of direct materials and for deed manufacturing labor in July 2017 Begin by calculating the the prior and efficiency variance for the each category of deact me (Do not found intermediary cations Round remount you enter the input cel to the nearest whole doll Label ahvenances tvorable (F) or unfavorable ( For new balance, make sure to enter in the propriate field of the voice is zero, do not wc bel Antreviation Oly) Actual Price Actual input ty* Emiciency Flexible Costs incurred Variante Budgeted Price Variance Budget July 2017 More info More info the most popular model the Magellan X8, mbled in a dedicated facity in Savannah, Georgia Saabis keenly aware of the competitive treat from smartphone that use Google Maps and has put in a standard cost system to manage production of the Magellan Show implemented in time system some Savannah facility operates with no inventory of any kind Producing the Magellan X5 involves combining navigation system (imported trom plant in Dresden fed prio), an LCD screen made of polarized ass, and a casing developed from specially plastic The control of the Savannah plant. Troy Wood, is disappointed with the and costing system in place. The standards were developed on the basis of y done by an outside consult the start of the year Wood points out that he has rely on a significant unfavorable variance under this system. He Observer even of the present level of output workers seem to have a substantial amount of idle time. Moreover, he concerned that the production supervisor, Jake Kade is ware of the issue but is willing to lighten the standards because the currentionen benchmarks make his performance look good Print Done Print Done No from any liat or enter any number in the input fields and then click Check Answer INI o P7-47 (similar to) Question Help Saab Sant manufactures GPS devices for a chain of retail stores Ce the icon to view information about the MaglianXS) The touted and actual amounts for MagelanXS for July 2017 were as follows Click the icon to view the budgnted and actual amount Click the icon to view itonal Information Read the Requirement 1. Computer the price and officiency variances for the three categorine of direct materials and for direct manufacturing inbor in July 2017 Begin by calculating the the price and efficiency variances for the sech Category of direct materials. Do not found intermediary calculations. Round the amount you to the input to the rest wideolar Gabel auch varannan favorabile for hvortle (u For variance with a so balance, make sure to enter For in the appropriate field of the 200, do not act label Abbreviation und Olyquanta Actual Actuat input ty ceny Flexible Costs incurred Variance Budgeted Price Variance Budget Navigation system Data Table Faguruments 1 Actual Amounts Budgeted Amounts 4.100 2 Magetan Sund Navigation scout Navigation 4,837 $47.00 1045 Compute the price and efficiency variance for the three categories of direct materials and for det manufacturing labor in Aly 2017 Describe the types of action the employees at the Savannah lant may have to reduce the accuracy of the Mandards set by the outside constant Why would loyees take those actions? Is this behavior Nicat Wood does noring about the standard costs will have any of the standards of ethical conduct for practitioners derbed in the IMA Statement of Ethical Professional Practice? What ons houd Woodlaka? Wood can be benchmarking information about the estimated cost of Saat competitors such as Garminand Tom Tom from the Compet Inne In (C) Discuss the pros and cons of using the cu nformation to compute the various introduirement 4 351.250 1025 $13.954 4.40 $50,00 2460 $ 13,537 Ounces of specialty rectang labor costs Dered mange 530,157 2485 CH Print Done Print 1000 Data Table - Budgeted Amounts Actual Amounts 4,100 4,900 $ 83,353 $ 91,903 4,837 Magellan XS units produced Navigation systems cost Navigation systems Polarized glass cost Sheets of polarized glass used Plastic casing cost Ounces of specialty plastic used Direct manufacturing labor costs Direct manufacturing labor-hours 4,387 $ 51,250 1,025 $ 47,025 1,045 $ 13,284 $ 13,537 4,428 4,668 $ 59,040 $ 60,137 2,460 2,485