Question
24 2 pts A company has two way of producing units. Method 1 has higher variable costs than Method 2, but Method 1 has lower
24 2 pts A company has two way of producing units. Method 1 has higher variable costs than Method 2, but Method 1 has lower fixed costs than Method 2. The selling price is the same for either method of production. The accountant for the company has found that at 15,000 units, the company would have the same net operating income regardless of which method of production is used. If the projected sales level for next year is 14,000 units, which method of production would give the company higher income? Method 2 O Method 1 Question 25 2 pts A company charges overhead based on pounds of direct materials. The company has a favorable materials quantity variance. Which of the following is true? O The company would have an unfavorable VOH efficiency variance. O The company would have a favorable VOH efficiency variance. None of these answers are correct. O The company would have a favorable VOH spending variance. O The company would have an unfavorable VOH spending variance
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