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If the AMD Ryzen 16-Core CPU saves $1,000 per computer manufactured, how would computer manufacturers’ variances be impacted?

AMD is rumored to be releasing a new 16-core, 32 thread CPU, that would be significantly more powerful than its competitors – and it would be about $1,000 less expensive than the closest Intel CPU. This AMD chip is named “AMD Ryzen” and it has six more cores than Intel’s current primary desktop CPU – […]

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How would the strike at Just Born, the maker of Peeps, impact its standard costing variances?

Just Born Quality Confections (Just Born) makes marshmallow Peeps, Mike and Ikes, Hot Tamales, and other candies. The company has approximately 600 employees and is privately-held. Its headquarters and Peeps factory are in Bethlehem, Pennsylvania.  In September 2016, the factory employees represented by the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union of America Local 6 […]

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Is a favorable raisin quantity variance good for Kellogg’s Raisin Bran?

Kellogg’s Raisin Bran is famous for its advertising slogan of “Two scoops of raisins in every box.” The current box design for Raisin Bran shows two scoops of raisins on the front of the box. A few months ago, a post went viral on Reddit that showed a picture of the raisins actually found in […]

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When the chocolate used in Cadbury Creme Eggs was changed to a less expensive chocolate, what variances would have been impacted?

A Cadbury Creme Egg is an egg-shaped chocolate candy that weighs about 35 grams, or a little more than 1.2 ounces. It is filled with a white fondant and a smaller amount of yellow fondant, meant to mimic an actual egg.  (Fondant is a type of sugar syrup.) In the U.S., Cadbury Creme Eggs are […]

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How does the rising cost of hazelnuts impact NUTELLA®?

Hazelnuts are used in high-end chocolate items such as pralines and truffles.  In addition, hazelnuts are used in Nutella spread.  Turkey supplies more than 70% of the world’s hazelnuts. In 2014, there was a widespread frost in Turkey that damaged hazelnut flowers and cut production of hazelnuts by 28%.  The price of hazelnuts more than […]

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How will cost standards be impacted at PEZ Candy Inc. by the rising cost of sugar and labor?

PEZ Candy Inc. produces the popular small candy that is dispensed in collectible flip-top dispensers.  PEZ candy was invented as a breath mint in Vienna, Austria, in 1927.  The name PEZ is derived from “pfefferminz” which is the word for peppermint in German. In the United States, PEZ candies are produced in a factory in […]

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How does the renegotiated labor contract impact the standard cost of cars for GM?

A few years ago, Chrysler renegotiated its labor contract with the United Auto Workers (UAW) union. New hires were to be paid $14 per hour, down from the $28 per hour veteran workers received.  That cut resulted in an average combined wage and benefit rate per hour in 2011 of $49, compared to $76 per […]

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How will the increasing cost of chocolate impact Hershey’s variances?

The price of chocolate had been predicted to increase rapidly beginning in late 2013 and continue into 2014, according to the Wall Street Journal.  The price increase is due to multiple factors, including a shortage of cocoa beans and an increase in demand by consumers. Although the demand for all chocolate has been increasing, consumer […]

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