Changes in labor contracts, modifications of plant, and rearrangements of work flow and production operations.
With respect to monthly reporting and control of direct labor, the internal monthly performance report should include actual direct labor data compared with planned labor hours and costs (adjusted to actual output), by responsibility. These reports are essential for management actions directed toward higher operational efficiency. The performance reports on direct labor may be (1) separate reports or (2) included in the regular departmental performance report. To illustrate performance reporting. Return to the example in chapter 7 for Department X(page 251) Assume the annual profit plan specified the following January data for Department X.