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What is one course of action for management to take to mitigate the major problems in this situation? Which of the stakeholder groups will likely

What is one course of action for management to take to mitigate the major problems in this situation? Which of the stakeholder groups will likely be harmed in the implementation of the recommended course of action contain? Explain what aspect(s) of the business the course of action improves and how so.

Tom Kemper is the controller of the Wichita manufacturing facility of Prudhom Enterprises, Inc. The annual cost control report is one of the many reports that must be filed with corporate headquarters and is due at corporate headquarters shortly after the beginning of the New Year. Kemper Page 424does not like putting work off to the last minute, so just before Christmas, he prepared a preliminary draft of the cost control report. Some adjustments would later be required for transactions that occur between Christmas and New Year's Day. A copy of the preliminary draft report, which Kemper completed on December 21, follows:

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Wichita Manufacturing Facility Cost Control Report December21 Preliminary Draft Flexible Actual Spending Budget Results Variances Labor-hours ......... ....1 18,000 18,000 Direct labor $ 324,000 $ 326,000 $ 2,000 U Power 18,000 19,750 1,750 U Supplies 99,000 105,000 6,000 U Equipment depreciation. 332,000 343,000 11,000 U Supervisory salaries ...... 275,000 273,000 2,000 F Insurance ........ 37,000 37,000 0 Industrial engineering.. 210,000 189,000 21,000 F Factory building lease .... 60,000 60,000 0 Total expense ............. $ 1,355,000 $ 1,352,750 S 2.250 F

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