Different Management Levels in Bates, Inc

question 11

Essay

Different management levels in Bates, Inc., require varying degrees of managerial accounting information. Because of the need to comply with the managers' requests, four different variances for manufacturing overhead are computed each month. The information for the September overhead expenditures is as follows:
Required:
a. Compute a 4-variance analysis for the plant controller.
b. Compute a 3-variance analysis for the plant manager.
c. Compute a 2-variance analysis for the corporate controller.
d. Compute the flexible-budget variance for the manufacturing vice president.

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Definitions:

Institutionalization

The process by which a practice or organization becomes well established and widely recognized as an important component of society.

Unfreezing

The initial stage in the change process where existing behaviors or attitudes are challenged to prepare for the introduction of new ways of functioning.

Reengineering

The radical redesign of organizational processes to achieve major improvements in such factors as time, cost, quality, or service.

Low Tolerance

A decreased capacity or willingness to accept opinions, behaviors, or practices different from one's own.