Based on the output accomplished during this year

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Based on the output accomplished during this year, 9,900 standard direct labor hours should have been used. Actual variable factory overhead was $596,000, and actual fixed factory overhead was $410,000 for the year. Based on this information, the variable overhead spending variance for JoyT for this year was a. $24,000 unfavorable. b. $2,000 unfavorable. c. $4,000 favorable. d. $22,000 favorable. 144. CSO: 1C1e LOS: 1C1r A company has a fixed overhead volume variance that is $10,000 unfavorable. The most likely cause for this variance is that a. the production supervisory salaries were greater than planned. b. the production supervisory salaries were less than planned. c. more was produced than planned. d. less was produced than planned. 145. CSO: 1C1e LOS: 1C1r When using a flexible budgeting system, the computation for the variable overhead spending variance is the difference between a. actual variable overhead and the previously budgeted amount. b. the previously budgeted amount and actual inputs times the budgeted rate. c. the amount applied to work-in-process and actual variable overhead. d. actual variable overhead and actual inputs times the budgeted rate.
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57 146. CSO: 1C1e LOS: 1C1s Fortune Corporation’s Marketing Department recently accepted a rush order for a nonstock item from a valued customer. The Marketing Department filed the necessary paperwork with the Production Department, which complained greatly about the lack of time to do the job the right way. Nevertheless, the Production Department accepted the manufacturing commitment and filed the required paperwork with the Purchasing Department for the needed raw materials. A purchasing clerk temporarily misplaced the paperwork. By the time the paperwork was found, it was too late to order from the company’s regular supplier. A new supplier was located, and that vendor quoted a very attractive price. The materials arrived and were rushed into production, bypassing the normal inspection processes (as directed by the Production Department supervisor) to make up for lost time. Unfortunately, the goods were of low quality and created considerable difficulty for Fortune’s assembly-line personnel. Which of the following best indicates the responsibility for the materials usage variance in this situation? a. Purchasing. b. Purchasing and Marketing. c. Marketing and Production. d. Purchasing, Marketing, and Production. 147. CSO: 1C1e LOS: 1C1s Johnson Inc. has established per unit standards for material and labor for its production department based on 900 units normal production capacity as shown below. 3 lbs. of direct materials @ $4 per lb. $12 1 direct labor hour @ $15 per hour 15 Standard cost per unit $27 During the year 1,000 units were produced. The accounting department has charged the production department supervisor with the following unfavorable variances.
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