Problems at Wingo’s Widgets: Using Data Analytics to Explore Labor Rate and Efficiency Variances for Decision Making

Abstract

In this managerial or cost accounting case, students utilize analytical tools to investigate labor related data of a fictitious company to provide recommendations to senior management about how bonuses should be allocated.  The purpose of this case study is to provide students will a real-world application of how variance analysis can help solve managerial problems and provide data needed to create ethical recommendations in business.  Students will utilize Excel to interpret and visualize the data provided and then prepare recommendations for management.  In addition to improving students’ analytical skills and communication skills, this case requires students to utilize critical thinking to assess the ethical implications of their recommendations.  Pre and post survey results agree that students utilized and improved their confidence in analytical and critical thinking abilities.  Student feedback was extremely positive with students praising the practical nature of the case as well as its focus on key data analytic techniques.