You have been asked to investigate some cost problems in the Assembly Department ofRuthenium Electronics Coa consumer electronics companyTo begin your investigationyou have obtained the following budg

The Assembly Department has experienced significant unfavorable variances in both direct labor and direct materials. The supervisor has indicated that they have been experiencing problems with purchased parts not fitting together well, which has resulted in the need to scrap and sort parts to get assemblies put together. This likely explains the unfavorable direct materials variance.

Additionally, the supervisor has mentioned that the work from the Fabrication Department has been shoddy, with around 20% of the items unable to be assembled. This has resulted in the need to scrap and rework a lot of the items, which explains the unfavorable direct labor variance.

Overall, the poor performance in the Assembly Department appears to be due to external factors beyond the control of the department itself. The issues with purchased parts and fabrication from the Fabrication Department have led to additional costs in terms of time and materials for the Assembly Department