Objective: Demonstrate understanding of spreadsheet programming, variance analysis, and variance interpretation Deliverables: Use the planning budget and actual performance data provided in the Case...

Objective:
Demonstrate understanding of spreadsheet programming, variance analysis, and variance interpretation

Deliverables:

1. Use the planning budget and actual performance data provided in the Case Study Template to calculate the following variances:
   
   
   1. Volume Variances for each line item in the Product Margin Statement
   
   
   2. Flexible Budget Variances for each line item in the Product Margin Statement
   
   
   3. Material Quantity Variance for each of the three products, and the Labor Efficiency Variance across all three products.
   
   
   4. Material Price Variance for each of the three products, and Labor Rate Variance across all three products.
   
   
   
   


2. Using the Cast Study Template, state whether each variance is Favorable or Unfavorable.


3. Explain which function within the organization (production, purchasing, or human relations) would be the responsible party for the Material Quantity Variances, Labor Efficiency Variance, Material Price Variances, and Labor Rate Variance.


4. Provide plausible explanations that you could verify with each responsible party relating to the Material Quantity Variances, Labor Efficiency Variance, Material Price Variances, and Labor Rate Variance.