Jayzee Company manufactures a variety of products in a variety of departments, and evaluates departments and departmental managers by comparing actual cost and output relative to the budget. Departmental managers help create the budgets, and usually provide information about input quantities for materials, labor, and overhead costs. Kurt Jackson is the manager of the department that produces Product Z. Kurt has estimated these inputs for product Z: 2 Click the icon to view Kurt's innut estimations A click the icon to view actual denartment information 1. Are these budget standards challenging for the department that produces product Z? The standards proposed by Kurt are challenging. In fact, he set the target above the level his department currently achieves. 2. Why do you suppose Kurt picked these particular standards? Kurt probably chose these standards so that his department would be able to make the goal and any resulting reward. His department can likely beat these goals with extreme effort 3. What steps can Jayzee Company's top management take to make sure Kurt's standards really meet the goals of the firm? extreme effort little effort A. Management could use industry averages. B. The reward structure should be designed to encourage increasing productivity, not beating the budget. C. Management should work with Kurt to better understand his department and encourage him to set more realistic targets. D. A and B only. E. A, B, and C. (Click the icon to view actual department informati i Data Table (Click the icon to view Kurt's input estimations.) | (Click the icon to view Kurt's input quantities.) ad tl i Data Table X Are Top management of Jayzee Company has decided to implement budget standards that will challenge the workers in each department, and it has asked Kurt to design more challenging input standards for product Z. Kurt provides top management with the following input quantities: Input Budget Quantity per Unit of Output e sta his department cul Input Why Direct material Budget Quantity per Unit of Output 8 pounds 30 minutes Direct material 7.9 pounds tor Direct manufacturing labor bal and any resultin Direct manufacturing labor 29 minutes Machine time 24 minutes Machine time 23.6 minutes Wha meet the goals of A. Print Done Print Done B. C. Managem X Requirements re i More Info D. A and Bol E. A, B, and Discuss the following: 1. Are these budget standards challenging for the department that produces product Z? 2. Why do you suppose Kurt picked these particular standards? 3. What steps can Jayzee Company's top management take to make sure Kurt's standards really meet the goals of the firm? The department produces about 100 units of product Z each day. Kurt's department always gets excellent evaluations, sometimes exceeding budgeted production quantities. For each 100 units of product Z produced, the company uses, on average, about 48 hours of direct manufacturing labor (eight people working 6 hours each), 790 pounds of material, and 39.5 machine hours. Print Done k to noloot yo Drint None would be able to make the to mak s rea be able have to work ge increasing productivity, not beat would be able to make the to mak s rea be able have to work ge increasing productivity, not beat by Kurt are challenging. Ir Curt pick ar stan are e standa epartm are not Company's top management t Jayzee Company manufactures a variety of products in a variety of departments, and evaluates departments and departmental managers by comparing actual cost and output relative to the budget. Departmental managers help create the budgets, and usually provide information about input quantities for materials, labor, and overhead costs. Kurt Jackson is the manager of the department that produces Product Z. Kurt has estimated these inputs for product Z: 2 Click the icon to view Kurt's innut estimations A click the icon to view actual denartment information 1. Are these budget standards challenging for the department that produces product Z? The standards proposed by Kurt are challenging. In fact, he set the target above the level his department currently achieves. 2. Why do you suppose Kurt picked these particular standards? Kurt probably chose these standards so that his department would be able to make the goal and any resulting reward. His department can likely beat these goals with extreme effort 3. What steps can Jayzee Company's top management take to make sure Kurt's standards really meet the goals of the firm? extreme effort little effort A. Management could use industry averages. B. The reward structure should be designed to encourage increasing productivity, not beating the budget. C. Management should work with Kurt to better understand his department and encourage him to set more realistic targets. D. A and B only. E. A, B, and C. (Click the icon to view actual department informati i Data Table (Click the icon to view Kurt's input estimations.) | (Click the icon to view Kurt's input quantities.) ad tl i Data Table X Are Top management of Jayzee Company has decided to implement budget standards that will challenge the workers in each department, and it has asked Kurt to design more challenging input standards for product Z. Kurt provides top management with the following input quantities: Input Budget Quantity per Unit of Output e sta his department cul Input Why Direct material Budget Quantity per Unit of Output 8 pounds 30 minutes Direct material 7.9 pounds tor Direct manufacturing labor bal and any resultin Direct manufacturing labor 29 minutes Machine time 24 minutes Machine time 23.6 minutes Wha meet the goals of A. Print Done Print Done B. C. Managem X Requirements re i More Info D. A and Bol E. A, B, and Discuss the following: 1. Are these budget standards challenging for the department that produces product Z? 2. Why do you suppose Kurt picked these particular standards? 3. What steps can Jayzee Company's top management take to make sure Kurt's standards really meet the goals of the firm? The department produces about 100 units of product Z each day. Kurt's department always gets excellent evaluations, sometimes exceeding budgeted production quantities. For each 100 units of product Z produced, the company uses, on average, about 48 hours of direct manufacturing labor (eight people working 6 hours each), 790 pounds of material, and 39.5 machine hours. Print Done k to noloot yo Drint None would be able to make the to mak s rea be able have to work ge increasing productivity, not beat would be able to make the to mak s rea be able have to work ge increasing productivity, not beat by Kurt are challenging. Ir Curt pick ar stan are e standa epartm are not Company's top management t
