This time we let you put your manager hat on and manage by exception; based on our understanding of standards and variances. You will be assigned the business that we used to practice calculating materials and labor variances. So for your scenario, write a 100-200 word (professional-appearing, with acceptable spelling, grammar, etc.) discussion post in a new thread that fully describes:

1. What you feel could have been the root cause of each of the variances, i.e., price and quantity if you were assigned a materials scenario (#1 or #2) or rate and efficiency if you were assigned the labor scenario (#3) AND
2. Based on your answers to 1) above, what would you, as a manager or owner, do about it? (Be very specific, not just do better!)

A score of 10 points will be earned if (and only if):

• You appear to understand and be able to clearly communicate the concepts of what each type of variance could indicate.
• You appear to have tried to come up with an original underlying reason for the variances (i.e., not just used the exact same reason already posted in someone elses thread, and also not just something like the variance is $200 because it is the difference between $1,600 and $1,800).

Points will be deducted accordingly based on any deficiencies (variances?) of the above; 0 points will be earned for original posts after the Monday April 6 (11:59 PM) deadline.

Scenario assignments:

Scenario #2 (materials in the pizza place business)