The accountant for Lane and Company uses a statistical control

The accountant for Lane and Company uses a statistical control chart to help management to decide when to investigate variances. The critical value is one standard deviation from the mean. The company incurred the following direct labour efficiency variances during the second half of the year:

The standard direct labour cost during each of these months was $80 000. The accountant has estimated that the firm’s monthly direct labour efficiency variances have a standard deviation of $3500.
Required:
1. (a) Draw a statistical control chart and plot the variance data given above.
(b) Which variances should be investigated? Explain why.
2. Suppose that the accountant’s rule of thumb is to investigate all variances equal to or greater than 5 per cent of standard cost. Which variances will be investigated?
3. Would you investigate any of the variances listed above other than those indicated by the rules discussed in requirements l and 2? Explain your answer.

 

Stressed over that homework?

Essay deadline breathing down your neck?

Let’s cut to the chase: Why struggle when you can ace it with zero hassle?

Whether it’s essays, research papers, or assignments — we’ve got you covered.

✅ Expert writers
✅ 100% original work
✅ No AI tools, just real pros

Stressed about your essay or homework? Get a top-quality custom essay NOW!!! Stop worrying. Start succeeding.

GradeEssays.com
We are GradeEssays.com, the best college essay writing service. We offer educational and research assistance to assist our customers in managing their academic work. At GradeEssays.com, we promise quality and 100% original essays written from scratch.
Contact Us

Enjoy 24/7 customer support for any queries or concerns you have.

Phone: +1 213 3772458

Email: support@gradeessays.com

© 2020 -2025 GradeEssays.com. All rights reserved.

WE HAVE A GIFT FOR YOU!

15% OFF 🎁

Get 15% OFF on your order with us

Scroll to Top