Go to How It’s Made and find a video that demonstrates a product of interest to you.
1. Share the weblink you viewed and discuss how the product is made. Note specifically the direct materials, direct labor, and overhead costs that are part of the production process. You may need to make some assumptions–but you are intelligent and good looking so you should be set to go!
2. Based on your assumptions regarding direct materials for your product, do a web search to determine the cost trends of this material over the past two years. What sort of variance will these trends produce and how should management deal with this variance?
3. Again, based on your assumptions, do you think the labor efficiency variance for this company would be favorable or unfavorable? What are your reasons for your choice? Note: for parts 2 and/or 3 you should engage in additional outside research to support your argument (which will bolster your grade on this assignment…). Don’t forget to cite per APA standards!
4. In your opinion, what could cause this company’s material quantity variances to be favorable? What could cause these material quantity variances to be unfavorable?