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Ultra, Inc., manufactures a full line of well- known sunglass frames and lenses. Ultra uses a standard-costing system to set attainable standards for direct materials,
- Ultra, Inc., manufactures a full line of well- known sunglass frames and lenses. Ultra uses a standard-costing system to set attainable standards for direct materials, labor, and overhead costs. Ultra reviews and revises standards annually, as necessary. Department managers, whose evaluations and bonuses are affected by their department’s performance, are held responsible to explain variances in their department performance reports. Recently, the manufacturing variances in the Bravo prestige line of sunglasses have caused some concern. For no apparent reason, unfavorable materials and labor variances have occurred. At the monthly staff meeting, Stuart Forman, manager of the Bravo line, will be expected to explain his variances and suggest ways of improving performance. Forman will be asked to explain the following performance report for 2012:
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