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Submit a written paper which is 3-4 pages in length (no more than 4-pages), exclusive of the reference page. Paper should be double spaced in Times New Roman (or its equivalent) font which is no greater than 12 points in size. The paper should cite at least three sources in APA format. One source can be your textbook.

In this paper, please discuss the following case study. In doing so, explain your approach to the problem, support your approach with references, and execute your approach. Provide an answer to the case studys question with a recommendation.

Case:

Please refer to the standard unit data for the Wolverine Company of Michigan

From the data provided, determine the following:

Direct materials price variance (based on materials used)

Direct materials usage variance

Direct labor variance

Direct labor efficiency variance

In addition, perform research with sources outside the textbook. Use these sources to define each variance category and how data for it is commonly collected. For each variance category for this specific case, discuss how you computed the value and explain its use in evaluating operational results. From your computational results, characterize whether the variances are favorable to the company or unfavorable. In this case, which two categories require managements attention as a priority? Support your view.

Normal volume per month is 40,000 direct labor hours. Wolverine's January 2014 budget was based on normal volume. During January, Wolverine produced 7,800 units with records indicating the data following: Actual: Direct materials purchased 25,000 lbs @ $3.60 Direct Materials (2 lbs @$3.50 per lb.) Direct materials used 23,100 lbs Direct labor The Wolverine Company Standards: $7.00 $6.50 per hour)$26.00 Direct Labor (4 hours 40,100 hours $6.30 STANDARD COST PER UNIT (excluding overhead)

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