Beta Copany

Written Analysis on the Case of

BETA COMPANY

In Partial Fulfillment of the Requirements in

Managerial Accounting

(BA 2005)

Critiqued by:

Princess Shayne A. Caterial

Trixy Balingit

Mary Jane Calzada

July 18, 2015

I. Executive Summary

Beta Company is a manufacturing company that produces two products, A and B, wherein both products use materials X and Y. In this case study, for the month of November, both products yield different number of units produced and incurred diverse total purchases for their materials used and sustained an actual hour needed to produce both products.

The company then needed to analyze variances that occurred in order to assess the production’s effectiveness and efficiency in their acquisition and use of production materials and labor rate and efficiencies.

This case study presented computations to support the analysis and interpretation regarding the variances present during the production process.

II. Statement of the Problem

The following are the posted questions that the critiques need to give solutions and justifications:

1. Calculate the material price and usage variances for the month.

2. Calculate the labor rate and efficiency variances for the month.

3. How would your answers to Question 1 and 2 change if you had been told that November’s planned production activity was 4,000 units of A and 4,000 units of B?

4. How would your answers to Question 1 and 2 change if you had been told that November’s sales were 4,000 units of A and 3,500 units of B?

III. Causes of the Problem

Basis for analyzing and interpreting data is needed in order for a company to improve and/or correct deficiencies of their processes and systems. In the case of a manufacturing company such as Beta’s, one tool to analyze and scrutinized production’s effectiveness and efficiency is through employing variance analysis. Hence, presented in this paper is a written case analysis for Beta Company’s production variances.

IV. Decision...