This time we let you put your manager hat on and manage by exception; based on our learning outcomes related to standards and variances. Each of you will be assigned one of the three businesses that we used to practice calculating materials and labor variances (see the practice activity document included in this module). So for your assigned scenario, write a 100-200 word (professional-appearing, with acceptable spelling, grammar, etc.) discussion post in a new thread (include your name in the thread along with some sort of descriptive thread title), that fully describes

Scenario #2 (materials in the pizza place business)

1. What you feel could have been the underlying (or root) cause of each of the variances, i.e., price and quantity if you were assigned a materials scenario (#1 or #2) or rate and efficiency if you were assigned the labor scenario (#3) AND
2. Based on your answers to 1) above, what would you, as a manager or owner, do about it? (Be very specific, not just something like do better and NOT change the standards!)
3. You have clearly included a plausible original underlying reason for each of the variances (i.e., not just used the exact same reason already posted in someone elses thread, and also NOT just something like the variance is $200 because it is the difference between $1,600 and $1,800).

• You have included specific steps (again, NOT just do better!) about what you as a manager would do about the variances based on your stated underlying root causes. And again, we assume the standards themselves have been properly determined so do not suggest that the standards (or budget) are erroneous and/or need changing!

Scenario #2 (materials in the pizza place business)