Determine the amount of the variances for the above costs

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Reference no: EM13572722

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.

Reference no: EM13572722

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