Job Enrichment Division (B) |
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Management Control Systems |
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Beginner |
1 |
Available.
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$9.00
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Actual data for the two programs run by the Job Enrichment Division of The Big Diamond Electronics Company [see Job Enrichment Division (A), item 99-081] for the fiscal year in question are shown below:
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Basic Literacy |
English as a Second Language |
Number of training sessions |
4 |
2 |
Length of each training session (in weeks) |
10 |
20 |
Average number of trainees per session |
80 |
40 |
Number of Trainee-weeks |
3,200 |
1,600 |
Number of Trainees |
320 |
80 |
Trainee: faculty ratio |
20:1 |
10:1 |
Number of faculty needed |
4 |
4 |
Number of faculty used |
4 |
3 |
Average faculty salary |
$22,000 |
$25,000 |
Books/workbooks per trainee |
4 |
3 |
Average price per book/workbook |
$16 |
$18 |
Administrative and general costs totaled $85,000 for the year.
Assignment
- Prepare a flexible budget for the two programs.
- Calculate the variances associated with faculty and books.
- Prepare a summary report for use by senior management that displays the differences between budget and actual expenses in a managerially-useful form.
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