Judy is the production manager of Test Images, a division of the larger corporation, Image View, Inc. Judy has complained several times to the corporate office that their cost reports used to evaluate her plant are misleading. She states, ‘‘I know how to get good quality product out at low cost. The cost reports don't show any of this; they're always negative, no matter what I do. There's no way you can win with accounting or the people at headquarters who use these reports.''

A copy of the latest report follows.

Identify and explain changes to the report that would make the cost information more meaningful to the productionmanagers.

Transcribed Image Text:

TEST IMAGES Cost Report Month of November (in thousands) Master Budget Actual Cost Excess Cost Raw Material Direct Labor Overhead 500 700 150 $1,350 S 550 650 180 $1,380 50 (50) 30 s 30 Total