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Scenario The Sweetheart Candy Company is a small organization dedicated to making a variety of...

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Question

Accounting

Scenario

The Sweetheart Candy Company is a small organization dedicated to making a variety of sweets for a regional market. You have just been promoted to a position as manager of the production department at Sweetheart Candy Company when your supervisor shows you the following report. She tells you to get it fixed. You suspect she is alluding to a problem with productivity and efficiency.

Sweetheart Candy Company

Performance Report

For month ending June 20xx

Budget

Actual

Variance Favorable or Unfavorable

Production in bags of candy

10,000

12,000

2,000

Costs:

Indirect Labor

$ 25,500

$ 30,600

$ 5,100

Supplies

$ 25,000

$ 29,700

$ 4,700

Utilities

$ 19,000

$ 22,600

$ 3,600

Total

$ 69,500

$ 82,900

$ 13,400

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