Please refer to the end-of-chapter Take It Further assignment TIF 9-3 Variance Interpretation TIF 9-3 Variance Interpretation Vanadium Audio Inc. is a small manufacturer of electronic musical instruments. The plant manager received the following variable factory overhead report for the past month of operatione Supplies Power and light Indirect factory wages $42.000 52.500 Factory Overhand Actual Production $ 30780 50.500 30.600 $121380 Controllable Variance $ 2.2200 1,600 8.500 5123200 5123,600 Actual units produced: 15.000 (00% of practical capacity] The plant manager is not pleased with the 512.320 unfavorable valable factory overhead controllable variance and has come to discuss the matter with the controller. The following discussion occurred Plant Manager: I just received this factory report for the latest month of operations. I'm not very pleased with these figures. Before these numbers go to headquarters, you and I need to reach an understanding Controller. Go ahead. What's the problem Plant Manager: What's the problem! Well, everything Look at the variance. It's too large.lft understand the accounting approach being used here, you are asuming that my costs are variable to the units produced. Thus, as the production volume declines, so should these costs. Well I don't believe these costs are variable at all. I think they are food costs. As a result when we operate below capacity, the costs really don't yo down. I'm being panalized for coats I have no control over. I need this repart to be redone to reflect tinis fact. If anything the clifference between actual and budget is essentially av a volume variance. Listen. Inow that you're a team player. You really need to reconsider your assumptions on this one. REQUIREMENT: Assume you are the controller. Write a memo responding to the plant manager ACCEPTABLE LENGTH Submit a paper that is 1 page. FORMATTING REQUIREMENTS 12-Point Times New Roman Font Double Space Lines Cite Used Sources If Applicable TO SUBMIT Upload the completed paper in in MS Word document through this assignment link