Question
1. When the actual sales-mix shifts toward a mix of products with lower contribution margins, there will be negative effects on a firm's: Sales mix
1. When the actual sales-mix shifts toward a mix of products with lower contribution margins, there will be negative effects on a firm's:
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Sales mix and sales quantity variances.
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Sales volume and market mix variances.
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Sales quantity and sales volume variances.
The following information for the past year is available from Gas Company, a company that uses machine hours to apply standard factory overhead cost to outputs:
Actual total factory overhead cost incurred | $ 31,000 |
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Actual fixed overhead cost incurred | $ 18,000 |
Budgeted fixed overhead cost | $ 13,000 |
Actual machine hours | 8,000 |
Standard machine hours allowed for the units manufactured | 5,500 |
Denominator volumemachine hours | 6,200 |
Standard variable overhead rate per machine hour | $ 3 |
2. Under a three-variance breakdown (decomposition) of the total factory overhead variance, the total factory overhead spending variance is:
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$6,000 favorable.
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$4,600 unfavorable.
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$0.
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$5,400 favorable.
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$5,400 unfavorable.
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Sales mix and sales volume variances.
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Market mix and sales mix variance.
3. The master budget variance for a period reveals whether a company has achieved:
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The sales level budgeted for the period.
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Control of total expenses for the period.
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Control of basic business processes.
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An adequate return on investment (assets) during the period.
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The master budgeted operating income for the period.
4. The development and implementation of a comprehensive framework for managing and controlling quality is best accomplished through which type of company interaction?
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Executive decision making.
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Board of directors meeting.
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Divisional interaction.
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Market research.
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Cross-functional effort.
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