Reference no: EM132742265

Problem 1: Which of the following is not a question that needs to be answered with regard to quality control?

a. What happens to the spoiled units?

b. What is the actual cost of spoilage?

c. How can spoilage be controlled?

d. Why does spoilage happen?

Problem 2: Don Company found that the differences in product costs resulting from the application of predetermined overhead rates rather than actual overhead rates were very significant when actual production was substantially less than planned production. The most likely explanation is that

a. costs of overhead were substantially less than anticipated

b. overhead was composed chiefly of variable costs

c. several products were produced simultaneously

d. fixed factory overhead was a significant cost

e. costs of overhead items were substantially higher than anticipated