Requirement $3.$ Have

StenbackStenback$\text{'}$s

managers done a good job or a poor job controlling$$ materials, labor, and overhead$$ costs? Why?

The variances computed in Requirement $2$ suggest that the managers have done a

$$

$$

job controlling materials and labor costs. The

$$

$$

favorable

unfavorable

direct materials cost variance and direct labor efficiency variance help offset the

$$

$$

favorable

unfavorable

direct labor cost variance and direct materials efficiency variance. Managers have done a

$$

$$

good

poor

reasonable

job controlling overhead costs as evidenced by the fact that

$$

$$

all

none

some

of the overhead variances are

$$

$$

favorable

unfavorable

$.$

Part $7$

Requirement $4.$ Describe how

StenbackStenback$\text{'}$s

managers can benefit from the standard costing system.

Standard costing helps managers do the$$ following:

$$

$$

$$

$$

$$