Week 5 Discussion Research 1 - There would be less people...

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2 - B. Possible variances in direct labor could be caused by a machine breaking down or working improperly to blend the fruit flavored frozen desserts. If this occurs it could take more time per batch because you would have to utilize fewer machines to complete the same amount of work. Another possibility is if there is a rash of people who get sick and must call out. This could also cause a disruption in production.
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Unformatted text preview: There would be less people to do the same amount of work, so direct labor hours could result in an unfavorable variance in this case. Management can be held accountable for these types of variance because it is up to them to put safeguards into place to reduce these types of discrepancies in the standard amount of direct labor it would take to make a batch....
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This note was uploaded on 03/26/2012 for the course AC505 AC505 taught by Professor Dillan during the Spring '10 term at Keller Graduate School of Management.

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