Katsu,IncHas a Small Car Division That Operates as a Profit

question 24

Multiple Choice

Katsu,Inc.has a small car division that operates as a profit center.Below is a partially completed responsibility report for the first quarter. Compute the percentage variance for the flexible budget variance for sales revenue.(Round your answer to two decimal places.)

• A) 1.69% F
• B) 1.69% U
• C) 4.04% U
• D) 4.04% F

---

Definitions:

Average Costing

An inventory costing method where all units are valued at the average cost of all similar items in the inventory.

Process Costing

An accounting methodology that traces and accumulates direct costs, and allocates indirect costs of a manufacturing process, then assigns them to products.

Lean Manufacturing

A manufacturing enterprise that uses lean principles.

Work Centers

Refers to specific areas or segments in a manufacturing facility where a set of related production activities or processes are carried out.