Managerial Accounting

  1. Compute the efficiency variance for direct labor and direct materials.
  2. Write a 2-4 page report to Smoothie King’s national office that includes your calculations for the variances and addresses the following items:
    a. Explain whether you have reason to be concerned about your performance evaluation.
    b. Explain your concerns about the variance results and suggest a remedy.
    c. Explain what each variance means.
    d. Justify the importance of analyzing variances.
    Use your textbook and one other source as references to support your explanations.

Sample Solution