W5 Acct DQ, AssgnP1 and p2

· Part 1: Calculate all materials and labor variances in a spreadsheet by using a program like Excel. Be sure to include price, quantity, wage rate, and labor efficiency variances.

· Please include the formulas as it is in the template.

· Part 2: Prepare a memo to your subordinate, using a program like Word.

· Summarize and analyze the actual costs in relation to the standard costs incurred for the month.

· Ask for clarification of any variances that need to be investigated.

· Be sure to include whether alternatives exist for the future of the organization and

· explain how the results of the variance analysis might influence those alternatives.

Hint: See the Weekly Briefing as well as the Injection Molding Department self-study problem on page 562 of your text.

Assignment

ComfortRight, Inc. is a manufacturer of high-quality products designed to help support healthy backs and spines. Their newest product offering is a massage chair. Below is the standard cost structure for the chair:

This month, ComfortRight manufactured 500 massage chairs. The following costs were incurred:

Adapted from: Zimmerman, J. L. (2014). Accounting for decision making and control (8th ed.). New York: NY: McGraw-Hill, “Healing Touch”, p. 565.

Suppose you are the senior controller for ComfortRight and you plan to perform a variance analysis of the massage chairs manufactured to determine if the standards are being met. Once you have completed the analysis, you plan to show it to the production department manager and ask for an explanation of any variances that you believe should be examined.  

· Template