Tust Born Quality Confections (Just Born) makes marshmallow Peeps, Mike and amales, and other candies. The company has approximately 600 employee. s privately-held. Its headquarters and Peeps factory are in Bethlehem, Pennsyivaa. In September 2016, the factory employees represented by the Bakery, Corfecionery, Tobacco Workers and Grain Millers International Union of America al 6 went on strike and walked off the job. Nearly 400 workers at Just Born are members of this union. The union employees returned to work in early October after being on strike for about a month. During the strike, the company did hire 56 replacement workers, so not everyone was able to return to their old job after the strike. Also, during the strike, some employees did cross the picket line to work, so Just Born had a mixture of experienced and new employees in the factory during the strike. Fall is Just Born's busiest time of the year. Production is being ramped up to meet the demand for Peeps during the Easter season. The negotiations have not been finalized and the possibility of a return to the strike remains. The main sticking point is the company pension. Just Born wants new employees to participate in a 401(k) plan rather than the company's pension plan. Just Born has stated the current pension plan will stay the same for all current employees, but the union disagrees. The other point of disagreement is the amount of pay increases for employees.

Q: What type of cost drivers do modern costing systems use and how does it differ from the cost drivers…

A: Cost Driver Business activities are  influenced by a cost driver . Cost drivers are the factors…

Q: Q.How do managers plan for variable overhead costs?

A: The cost which is dependent upon the level of output and changes if the level of output fluctuates…

Q: What risks exist in a production conversion cycle?

A: The following are some of the risks that exists in the conversion cycle:   Authorization of…

Q: How does the planning of fixed overhead costs differ from the planning of variable overhead costs?

A: Variable cost: The cost which fluctuates on the basis of the output level produced. The variable…

Q: How does the existence of excess production capacity affect the decision to accept or reject a…

A: Special order:   The order received from special customers except regular customers at special price…

Q: What modifications are made to the cost classification of product costs in estimating service costs?

A: Cost classification refers to the separation of various expenses into different categories. It is…

Q: Why do managers consider Direct Coasts to be more accurate than Indirect  Costs?  How do managers…

A: Direct costs are the costs which are directly identifiable in the manufacturing process.  Indirect…

Q: a. what are the primary differences between traditional and activity-based costing?

A: Traditional costing and Activity based costing are two types of costing methods that are being used…

Q: what are the possible causes of adverse Material usage variance

A: The variation in material consumption is determined as the difference between the quantity of actual…

Q: What are the arguments for and against "backflush" costing?

A: Arguments for and against Backflush costing: Backflush costing system is that the method of…

Q: Why is it appropriate to use variable costing when planning production in the short term?

A: Variable Cost: The cost which is not fixed is called as variable cost. This cost is directly…

Q: What is the overall variance in overhead?

A: Overhead refers to secondary expenditures spent during the manufacturing and distribution of…

Q: Critically evaluate the concept and application of marginal costing

A: Concept of marginal costing: Marginal cost is the difference between total costs increasing or…

Q: How do the cost flows in backflush costing systems differ from those in traditional costing systems?

A:

Q: What are the expected cost takedown rates?

A: When a company offers new issues in the market, such as stocks or bonds, they appoint an…

Q: criticly identify the possible causes of labour and material variance

A: Labour Variances: 1. Unskilled or inefficient workers. 2. Unfavourable wage rates. 3. Unexpected…

Q: Compare actual and normal costing. What is the benefit of each? What is a circumstance in which each…

A: Actual Costing: Actual costing is a cost bookkeeping framework that utilizes genuine cost,…

Q: What are some possible reasons for a material price variance?

A: The reason for material price variance has been shown below

Q: How do current cost management techniques vary from earlier ones in terms of life cycle costing and…

A: Life cycle cost which traces the costs and revenues over a period of life of product.  Life cycle…

Q: How are the current practices of life cycle costing and target costing in cost management different…

A: The target costing is inferred by deducting the overall revenue from the market selling value, that…

Q: Critically evaluate the concept and application of marginal costing

A: Marginal Costing :— Marginal Costing is the Part of Cost management Techniques.  Marginal Costing…

Q: Once standard costs are established, what conditions wouldrequire that standards be revised?

A: Standard costs: Standard costs are the per-unit cost that is expected to be incurred under normal…

Q: Why functional (or volume)- based costing approaches may produce distorted costs.

A: In a functional-based cost accounting system, costs are allocated to cost objects using unit-based…

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance. 

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.