The director of cost management for odessa company uses a statistical control chart to management determine when to investigate variances. the critical value is 1 standard deviation. the company incurred the following direct-labor efficiency variances during the first six months of the current year.

january $ 500 f
february 1,600 u
march 1,400 u
april 1,800 u
may 2,100 u
june 2,400 u
the standard direct-labor cost during each of these months was $38,000. the controller has estimated that the firm’s monthly direct-labor variances have a standard deviation of $1,900.

required:
a. determine the cutoff value for investigation if the controller’s rule of thumb is to investigate all variances equal to or greater than 6 percent of standard cost.

b. based on the cutoff value, which of the month(s) will have their direct-labor efficiency variance investigated?

John novosel was employed by nationwide insurance company for fifteen years. novosel had been a model employee and, at the time of discharge, was a district claims manager and a candidate for the position of division claims manager. during novosel's fifteenth year of employment, nationwide circulated a memorandum requesting the participation of all employees in an effort to lobby the pennsylvania state legislature for the passage of a certain bill before the body. novosel, who had privately indicated his disagreement with nationwide's political views, refused to lend his support to the lobby, and his employment with nationwide was terminated. novosel brought two separate claims against nationwide, arguing, first, that his discharge for refusing to lobby the state legislature on behalf of nationwide constituted the tort of wrongful discharge in that it was arbitrary, malicious, and contrary to public policy. novosel also contended that nationwide breached an implied contract guaranteeing continued employment so long as his job performance was satisfactory. what decision as to each claim?

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