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budgets, and usually provide irformation about input quantišes for materials, la

ID: 2574145 • Letter: B

Question

budgets, and usually provide irformation about input quantišes for materials, labor, and overhead a departments and departmental managers by comparing actual cost and output relative to the budget Departmental managers heip croate the costs. Kurt Jackson is the manager of the depatment that produces Product Z. Kurt has estimated these inputs for product Z (Cickte iortove" Kurs ipt estimation) EB Cick the loon to view Kurt's input quanttes.) Read the requirements 1. Are these budget standards chalenging for the department that produces product Z? challenging In fact, he set the target | his department nerdy achieves 2. Why do you suppose Kurt picked these partioular standand toma hegal and any nesutng reward his department can likely beat hose goes with 3. What steps can Jayzee Company's top management take to make sure Kurts standards realy meet the goals of the im O A. Management could use indunty averages gets B. Managmert shold work wit, Kurt to better und ntand his department and encourage him to set more nsi O C. The rewand structure should be designed to encourage increasing productivity, not beating the budget O D. Aand B only OE. AB,and C. 0

Explanation / Answer

1) are not
2) at the level
3) be able
4) little effort
4) option e

Old standard New standard Actual (100 units) Direct material 8 pound 7.9 pound 790 Direct labour 30 min 29 min. 48 hours Machine time 24 min 23.6 min 39.5 Old standard For 100 units Direct material 8 pound 800 pounds Direct labour 30 min 50 hours Machine time 24 min 40 hours New standard For 100 units Direct material 7.9 pound 790 pounds Direct labour 29 min. 48 hours Machine time 23.6 min 39 hours