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Sweeney Company's 2014 responsibility accounting report includes the following:
Per Unit Variable Costs:
Standard
Actual
Materials Cost
$22.00
$21.80
Customer Delivery Cost
1.90
1.95
Inspection Cost
1.20
1.16
Sales Commissions
4.00
4.20
Fixed Costs:
Manufacturing
$720,000
$708,000
Advertising
107,000
120,000
Financial Statement Software Costs
15,600
18,000
Product Liability Cost
45,400
17,900
Actual volume of production and sales was 90,000 units.
Required
a.Determine the amount of the variances for the above costs and indicate whether each variance is favorable or unfavorable.
b.Speculate as to the management position that would be held responsible for (able to explain) each variance.
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