Solved: Drew Castello general manager of Sunflower

Manufacturing was frustrated He

Drew Castello general manager of Sunflower Manufacturing was frustrated He

Drew Castello, general manager of Sunflower Manufacturing, was frustrated. He wanted the
budgeted results, and his staff was not getting them to him fast enough. Drew decided to pay a
visit to the accounting office, where Jeff Hollingsworth was supposed to be working on the
reports. Jeff had recently been hired to update the accounting system and speed up the
reporting process.
“What’s taking so long?” Drew asked. “When am I going to get the variance reports?” Jeff
sighed and attempted to explain the problem. “Some of the variances appear to be way off. We
either have a serious problem in production, or there is an error in the spreadsheet. I want to
recheck the spreadsheet before I distribute the report.” Drew pulled up a chair, and the two men
went through the spreadsheet together. The formulas in the spreadsheet were correct and
showed a large unfavorable direct labor efficiency variance. It was time for Drew and Jeff to do
some investigating.
After looking at the time records, Jeff pointed out that it was unusual that every employee in the
production area recorded exactly eight hours each day in direct labor. Did they not take breaks?
Was no one ever five minutes late getting back from lunch? What about clean- up time between
jobs or at the end of the day?
Drew began to observe the production laborers and noticed several disturbing items. One
employee was routinely late for work, but his time card always showed him clocked in on time.
Another employee took 10 to 15 minute breaks every hour, averaging about 1 ½ hours each
day, but still reported eight hours of direct labor each day. Yet another employee often took an
extra 30 minutes for lunch, but his time card showed him clocked in on time. No one in the
production area ever reported any “ down time” when they were not working on a specific job,
even though they all took breaks and completed other tasks such as doing clean- up and
attending department meetings.

Requirements
1. How might the observed behaviors cause an unfavorable direct labor efficiency variance?
2. How might an employee’s time card show the employee on the job and working when the
employee was not present?
3. Why would the employees’ activities be considered fraudulent?

Drew Castello general manager of Sunflower Manufacturing was frustrated He

ANSWER
https://solvedquest.com/drew-castello-general-manager-of-sunflower-manufacturing-was-

Reach out to freelance2040@yahoo.com for enquiry.

 frustrated-he/

Reach out to freelance2040@yahoo.com for enquiry.

Powered by TCPDF (www.tcpdf.org)