(Solved): Pina Colada Possible Inc. (PP) is a manufacturer of toaster ovens. To improve control over operation ...

Pina Colada Possible Inc. (PP) is a manufacturer of toaster ovens. To improve control over operations, the president of PP wants to begin using a flexible budgeting system, rather than using only the current master budget. The following data are available for PP's expected costs at production levels of

, and 112,200 units. Variable costs Manufacturing

per unit Administrative

per unit Selling

per unit Fixed costs Manufacturing

Administrative

(a) Your answer is correct. Prepare a flexible budget for each of the possible production levels:

, and 112,200 units. (List variable costs before fixed costs.) All of the following statements are correct about controllable costs except costs incurred directly by a level of responsibility are controllable at that level. all costs are controllable by top management. all costs are controllable at some level of responsibility within a company. fewer costs are controllable as one moves up to each higher level of managerial responsibility.