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As the plant controller, you present the variance report in Item 1 above to Paul Crooke, the plant manager. After reading it, Paul states: If
As the plant controller, you present the variance report in Item 1 above to Paul Crooke, the plant manager. After reading it, Paul states: "If we present this performance report to corporate with that large unfavorable labor variance in Blending, nobody in the plant will receive a bonus. Those standard hours of 5,500 are way too tight for this production process. Fifty-eight hundred hours would be more reasonable, and that would result in a favorable labor efficiency variance that would more than offset the unfavorable labor rate variance. Please redo the variance calculations using 5,800 hours as the standard." You object, but Paul ends the conversation with, "That is an order." What standards of ethical professional practice would be violated if you adhered to Paul's order? How would you attempt to resolve this ethical conflict?
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If you were to adhere to Pauls order to change the standard hours in the variance calculations to 5800 hours in order to manipulate the results and po...Get Instant Access to Expert-Tailored Solutions
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