Question
Fred believes that if everything goes perfectly, he can produce desktop computers for $320 each. However, there could be minor delays and other expected drawbacks
Fred believes that if everything goes perfectly, he can produce desktop computers for $320 each. However, there could be minor delays and other expected drawbacks which could add 25% to the production costs. This month, Fred produced 20% computers at a total cost of $7,600. Which is true?
Select one: a. Based on practical standards, there is a total favourable variance of $80 b. Based on ideal standards, there is a total favourable variance of $1,200 c. None of these are true. d. Based on practical standards, there is a total unfavourable variance of $1,200
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