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MGMT 6170-1-YumTown Frozen Foods is an emerging company

01 / 10 / 2021 Projects

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MGMT 6170-1-YumTown Frozen Foods is an emerging company

YumTown Frozen Foods is an emerging company in the market of high-end TV dinners. YumTown’s elevated takes on popular favorites such as steak and potatoes and macaroni and cheese have gained significant attention on cable food channels. However, as YumTown’s level of activity has risen, the company has struggled to make sense of its manufacturing costs. Representatives have asked you to analyze the company’s factory overhead costs and labor hours. YumTown accumulates the following data concerning a mixed cost by relating total factory overhead costs to direct labor hours.MonthDLHFactory OverheadMarch300$2,400April400$3,000May600$3,600June790$4,500July500$3,200August800$4,900What is the flexible budget formula for factory overhead?Part 2:Honey Bear Confections is a small company dedicated to making bear-shaped sweets with honey as a sugar substitute. You have just been promoted to a position as manager of the production department at Honey Bear Confections when your boss shows you the following report. She tells you to “get it fixed” if you want to prove you are capable of being a manager. You suspect she is alluding to a problem with productivity and efficiency. After reviewing the following information and making the necessary calculations, what would you recommend?HoneyBear ConfectionsManufacturing Overhead Static Budget ReportFor the Month Ended June 20XXBudgetActualVariance (U of F)Production in bags of candy10,00012,0002,000FCosts:Indirect labor$26,000$31,200$5,200USupplies$25,000$29,500$4,500UUtilities$19,000$22,500$3,500U $70,000$83,200$13,200UPart 3: In a 2-paragraph essay respond to the following:What is the purpose of variance analysis?Should all variances be examined?



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