Evaluating Managerial Performance
SE 10. Raul Tempest, the controller at GoTo Products, gave Jim Dodds, the production manager, a report containing the following information:
| Actual Cost | Standard Cost | Variance | |
| Direct materials | $40,200 | $38,200 | $2,000 (U) |
| Direct labor | 17,550 | 17,000 | 550 (U) |
| Variable overhead | 52,860 | 50,000 | 2,860 (U) |
Tempest asked for a response. If you were Dodds, how would you respond? What additional information might you need to prepare your response?
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