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Santoro Scientific manufactures GPS devices for a chain of retail stores. (Click the icon to view information about the Magellan XS.) The budgeted and actual amounts for Magellan XS for July 2020 were as follows: (Click the icon to view the budgeted and actual amounts.) 2 (Click the icon to view additional information.) Read the requirements. Requirement 1. Compute the price and efficiency variances for the three categories of direct materials and for direct manufacturing labor in July 2020. Begin by calculating the the price and efficiency variances for the each category of direct materials. (Do not round intermediary calculations. Round the amount you enter into the input field to the nearest whole dollar. Label each variance as favorable (F) or unfavorable (U). For variances with a $0 balance, make sure to enter " 0 " in the appropriate field. If the variance is zero, do not select a label. Abbreviation used: Qty = quantity.) Actual Price Actual Input Qty More info Its most popular model, the Magellan XS, is assembled in a dedicated facility in Savannah, Georgia. Santoro is keenly aware of the competitive threat from smartphones that use Google Maps and has put in a standard cost system to manage production costs of the Magellan XS. It has also implemented a just-in-time system so the Savannah facility operates with no inventory of any kind. Producing the Magellan XS involves combining a navigation system (imported from Santoro's plant in Dresden at a fixed price), an LCD screen made of polarized glass, and a casing developed from specialty plastic. Data table More info The controller of the Savannah plant, Troy White, is disappointed with the standard costing system in place. The standards were developed on the basis of a study done by an outside consultant at the start of the year. White points out that he has rarely seen a significant unfavorable variance under this system. He observes that even at the present level of output, workers seem to have a substantial amount of idle time. Moreover, he is concerned that the production supervisor, Jake Kader, is aware of the issue but is unwilling to tighten the standards because the current lenient benchmarks make his performance look good. 1. Compute the price and efficiency variances for the three categories of direct materials and for direct manufacturing labor in July 2020. 2. Describe the types of actions the employees at the Savannah plant may have taken to reduce the accuracy of the standards set by the outside consultant. Why would employees take those actions? Is this behavior ethical? 3. If White does nothing about the standard costs, will his behavior violate any of the standards of ethical conduct for practitioners described in the IMA Statement of Ethical Professional Practice? 4. What actions should White take? 5. White can obtain benchmarking information about the estimated costs of Santoro's competitors such as Garmin and TomTom from the Competitive Intelligence Institute (CII). Discuss the pros and cons of using the CII information to compute the variances in requirement 1. Santoro Scientific manufactures GPS devices for a chain of retail stores. (Click the icon to view information about the Magellan XS.) The budgeted and actual amounts for Magellan XS for July 2020 were as follows: (Click the icon to view the budgeted and actual amounts.) (Click the icon to view additional information.) Read the Santoro Scientific manufactures GPS devices for a chain of retall stores. (Click the icon to view information about the Magellan XS.) The budgeted and actual amounts for Magellan XS for July 2020 were as follows: (Click the icon to view the budgeted and actual amounts.) (Click the icon to view additional information.) Read the Calculate the the price and efficiency variances for the direct labor. (Do not round intermediary calculations. Round the amount you enter into the input field to the nearest whole dollar. Label each variance as favorable (F) or unfavorable (U). For variances with a $0 balance, make sure to enter "0" in the appropriate field. If the variance is zero, do not select a label.) Santoro Scientific manufactures GPS devices for a chain of retail stores. (Click the icon to view information about the Magellan XS.) The budgeted and actual amounts for Magellan XS for July 2020 were as follows: (Click the icon to view the budgeted and actual amounts.) (Click the icon to view additional information.) Read the equirements. Requirement 2. Describe the types of actions the employees at the Savannah plant may have taken to reduce the accuracy of the standards set by the outside consultant. Why would employees take those actions? Is this behavior ethical? Santoro Scientific manufactures GPS devices for a chain of retail stores. (Click the icon to view information about the Magellan XS.) The budgeted and actual amounts for Magellan XS for July 2020 were as follows: (Click the icon to view the budgeted and actual amounts.) (i) (Click the icon to view additional information.) Read the First select the types of actions that may have been taken by the employees. Santoro Scientific manufactures GPS devices for a chain of retail stores. (Click the icon to view information about the Magellan XS.) The budgeted and actual amounts for Magellan XS for July 2020 were as follows: (Click the icon to view the budgeted and actual amounts.) (i) (Click the icon to view additional information.) Read the Next select the possible reasons the employees may have taken those actions. Santoro Scientific manufactures GPS devices for a chain of retail stores. (Click the icon to view information about the Magellan XS.) The budgeted and actual amounts for Magellan XS for July 2020 were as follows: (Click the icon to view the budgeted and actual amounts.) (Click the icon to view additional information.) Read the Requirement 3. If White does nothing about the standard costs, will his behavior violate any of the standards of ethical conduct for practitioners described in the IMA Statement of Ethical Professional Practice? (Select all answers that apply.) (View the IMA Statement of Ethical Professional Practice.) A. Yes, White's behavior violates the standard of integrity. B. No, White's behavior does not violate any of the standards of ethical conduct. C. Ves White's hahavinr vinlates the etandard of cradihility Santoro Scientific manufactures GPS devices for a chain of retail stores. (Click the icon to view information about the Magellan XS.) The budgeted and actual amounts for Magellan XS for July 2020 were as follows: (Click the icon to view the budgeted and actual amounts.) 2 (Click the icon to view additional information.) Read the requirements. Requirement 1. Compute the price and efficiency variances for the three categories of direct materials and for direct manufacturing labor in July 2020. Begin by calculating the the price and efficiency variances for the each category of direct materials. (Do not round intermediary calculations. Round the amount you enter into the input field to the nearest whole dollar. Label each variance as favorable (F) or unfavorable (U). For variances with a $0 balance, make sure to enter " 0 " in the appropriate field. If the variance is zero, do not select a label. Abbreviation used: Qty = quantity.) Actual Price Actual Input Qty More info Its most popular model, the Magellan XS, is assembled in a dedicated facility in Savannah, Georgia. Santoro is keenly aware of the competitive threat from smartphones that use Google Maps and has put in a standard cost system to manage production costs of the Magellan XS. It has also implemented a just-in-time system so the Savannah facility operates with no inventory of any kind. Producing the Magellan XS involves combining a navigation system (imported from Santoro's plant in Dresden at a fixed price), an LCD screen made of polarized glass, and a casing developed from specialty plastic. Data table More info The controller of the Savannah plant, Troy White, is disappointed with the standard costing system in place. The standards were developed on the basis of a study done by an outside consultant at the start of the year. White points out that he has rarely seen a significant unfavorable variance under this system. He observes that even at the present level of output, workers seem to have a substantial amount of idle time. Moreover, he is concerned that the production supervisor, Jake Kader, is aware of the issue but is unwilling to tighten the standards because the current lenient benchmarks make his performance look good. 1. Compute the price and efficiency variances for the three categories of direct materials and for direct manufacturing labor in July 2020. 2. Describe the types of actions the employees at the Savannah plant may have taken to reduce the accuracy of the standards set by the outside consultant. Why would employees take those actions? Is this behavior ethical? 3. If White does nothing about the standard costs, will his behavior violate any of the standards of ethical conduct for practitioners described in the IMA Statement of Ethical Professional Practice? 4. What actions should White take? 5. White can obtain benchmarking information about the estimated costs of Santoro's competitors such as Garmin and TomTom from the Competitive Intelligence Institute (CII). Discuss the pros and cons of using the CII information to compute the variances in requirement 1. Santoro Scientific manufactures GPS devices for a chain of retail stores. (Click the icon to view information about the Magellan XS.) The budgeted and actual amounts for Magellan XS for July 2020 were as follows: (Click the icon to view the budgeted and actual amounts.) (Click the icon to view additional information.) Read the Santoro Scientific manufactures GPS devices for a chain of retall stores. (Click the icon to view information about the Magellan XS.) The budgeted and actual amounts for Magellan XS for July 2020 were as follows: (Click the icon to view the budgeted and actual amounts.) (Click the icon to view additional information.) Read the Calculate the the price and efficiency variances for the direct labor. (Do not round intermediary calculations. Round the amount you enter into the input field to the nearest whole dollar. Label each variance as favorable (F) or unfavorable (U). For variances with a $0 balance, make sure to enter "0" in the appropriate field. If the variance is zero, do not select a label.) Santoro Scientific manufactures GPS devices for a chain of retail stores. (Click the icon to view information about the Magellan XS.) The budgeted and actual amounts for Magellan XS for July 2020 were as follows: (Click the icon to view the budgeted and actual amounts.) (Click the icon to view additional information.) Read the equirements. Requirement 2. Describe the types of actions the employees at the Savannah plant may have taken to reduce the accuracy of the standards set by the outside consultant. Why would employees take those actions? Is this behavior ethical? Santoro Scientific manufactures GPS devices for a chain of retail stores. (Click the icon to view information about the Magellan XS.) The budgeted and actual amounts for Magellan XS for July 2020 were as follows: (Click the icon to view the budgeted and actual amounts.) (i) (Click the icon to view additional information.) Read the First select the types of actions that may have been taken by the employees. Santoro Scientific manufactures GPS devices for a chain of retail stores. (Click the icon to view information about the Magellan XS.) The budgeted and actual amounts for Magellan XS for July 2020 were as follows: (Click the icon to view the budgeted and actual amounts.) (i) (Click the icon to view additional information.) Read the Next select the possible reasons the employees may have taken those actions. Santoro Scientific manufactures GPS devices for a chain of retail stores. (Click the icon to view information about the Magellan XS.) The budgeted and actual amounts for Magellan XS for July 2020 were as follows: (Click the icon to view the budgeted and actual amounts.) (Click the icon to view additional information.) Read the Requirement 3. If White does nothing about the standard costs, will his behavior violate any of the standards of ethical conduct for practitioners described in the IMA Statement of Ethical Professional Practice? (Select all answers that apply.) (View the IMA Statement of Ethical Professional Practice.) A. Yes, White's behavior violates the standard of integrity. B. No, White's behavior does not violate any of the standards of ethical conduct. C. Ves White's hahavinr vinlates the etandard of cradihility

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