Magic Cakes Co. produces birthday cakes, biscuits, and a variety of quality confectionery….

Magic Cakes Co. produces birthday cakes, biscuits, and a variety of quality confectionery. The

company recently installed a flexible manufacturing system for the production of its range of quality

confectionery. The company was experiencing serious problems in the production of confectionery

products that were affecting the quality of the final products and the capacity to deliver on time to

its customer. The problems were due to several major breakdowns in the company’s old production

machinery. The installation of the new production system was not anticipated when the current

year’s budget and cost structure were developed.

The new system was expensive, but management expects it to cut the labour time required by a

substantial amount. Management also expects the new equipment to allow a reduction in direct

material waste. On the negative side, the new flexible manufacturing system requires a more highly

skilled labour force to operate it than it was needed for the company’s old equipment.

The following cost variance report was prepared for October, the first full month after the equipment

was installed:

Attachments:

T1-2020-MAA70….pdf

Do you need a similar assignment done for you from scratch? We have qualified writers to help you. We assure you an A+ quality paper that is free from plagiarism. Order now for an Amazing Discount!
Use Discount Code “Newclient” for a 15% Discount!

NB: We do not resell papers. Upon ordering, we do an original paper exclusively for you.

The post Magic Cakes Co. produces birthday cakes, biscuits, and a variety of quality confectionery…. appeared first on Affordable Nursing Writers.