文档介绍：PART A
Report to management
It would be identified different variances for Tricol plc which occurred during the month of June. Some variance rate as calculated as below:
Direct Material Usage variance rate:
8000÷64000=%
Direct Material Price variance rate:
5600÷64000=%
Direct Labor Rate variance rate:
3520÷28800=%
Direct Labor Efficiency variance rate:
2880÷28800=10%
Total overhead variance rate:
400÷11400=%
pany's policy is that no application for variance analysis of the significance of the rate of 3%. Sales activities and revenue target is in June. Insurance costs and management costs were over budget. However, the actual labor costs more than 22% of its budget. Match, all the above-mentioned variation is higher.
For the use of materials may be beneficial, pany recently sought from a new and higher supplier of new materials, reducing waste and improving production equipment also reduces the waste of materials, high-quality materials reasons. The material price variance is unfavorable, and may be the new higher-quality material to increasing utilization. Labor efficiency is unfavorable, because the labor force will take time to adopt the upgrade will affect the labor force work behavior. Labor rate is negative, it may be mechanical and production of skilled labor operatives who expect a shortage of higher wages.
mendations for management actio