Business, 17.04.2020 16:43 cragajjar2

Peppermint Kiss is a manufacturer of candy. It currently manufacturers 3 different product lines. The manager of each product line is held responsible for generating revenue and controlling costs. The following information was provided by the Chocolate

Candy product line for the prior period:
Actual Results for 10,000 units Master Budget for 8,000 units
Sales Revenue $20,000 $12,000
Variable Manufacturing Costs $6,250 $2,000
Fixed Manufacturing Costs $4,350 $5,000
Variable SG&A $1,000 $1,600
Fixed SG&A $500 $500

Answer the following:
The Chocolate Candy product line is a
A. cost center.
B. investment center.
C. profit center.
If the company's materiality threshold is $900, how many flexible budget variances should be investigated?

Answers: 2

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Peppermint Kiss is a manufacturer of candy. It currently manufacturers 3 different product lines. Th...

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