Solved: Jayzee Company manufactures a variety of

products in a variety
Jayzee Company manufactures a variety of products in a variety

Jayzee Company manufactures a variety of products in a variety of departments and evaluates

departments and departmental managers by comparing actual cost and output relative to the
budget. Departmental managers help create the budgets and usually provide information about
input quantities for materials, labor, and overhead costs. Kurt Jackson is the manager of the
department that produces product Z. Kurt has estimated these inputs for product Z:
Input Budget Quantity per Unit of Output
Direct material .............. 8 pounds
Direct manufacturing labor ......... 30 minutes
Machine time ............... 24 minutes
The department produces about 100 units of product Z each day. Kurt’s department always
gets excellent evaluations, sometimes exceeding budgeted production quantities. For each 100
units of product Z produced, the company uses, on average, about 48 hours of direct
manufacturing labor (eight people working 6 hours each), 790 pounds of material, and 39.5
machine- hours.
Top management of Jayzee Company has decided to implement budget standards that will
challenge the workers in each department, and it has asked Kurt to design more challenging
input standards for product Z. Kurt provides top management with the following input quantities:
Input Budget Quantity per Unit of Output
Direct material .............. 7.9 pounds
Direct manufacturing labor .......... 29 minutes
Machine time............... 23.6 minutes

Discuss the following:

1. Are these budget standards challenging for the department that produces product Z?
2. Why do you suppose Kurt picked these particular standards?
3. What steps can Jayzee Company’s top management take to make sure Kurt’s standards
really meet the goals of the firm?

Jayzee Company manufactures a variety of products in a variety

ANSWER
https://solvedquest.com/jayzee-company-manufactures-a-variety-of-products-in-a-variety/

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