Evaluating Managerial Performance
SE 10. Raul Tempest, the controller at GoTo Products, gave Jim Dodds, the production manager, a report containing the following information:
|
Actual Cost |
Standard Cost |
Variance |
|
|
Direct materials |
$40,200 |
$38,200 |
$2,000 (U) |
|
Direct labor |
17,550 |
17,000 |
550 (U) |
|
Variable overhead |
52,860 |
50,000 |
2,860 (U) |
Tempest asked for a response. If you were Dodds, how would you respond? What additional information might you need to prepare your response?