Catherman Corporation manufactures one product. It does not maintain any beginning or ending inventories. The company uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold.During the year, the company produced and sold 32,400 units at a price of $42.30 per unit. Its standard cost per unit produced is $36.90 and its selling and administrative expenses totaled $102,000. The company does not have any variable manufacturing overhead costs and it recorded the following variances during the year: Materials price variance$62,000UMaterials quantity variance$900ULabor rate variance$30,210ULabor efficiency variance$8,000UFixed manufacturing overhead budget variance$16,900FFixed manufacturing overhead
volume variance$17,400FWhen the company closes its standard cost variances, the Cost of Goods Sold will increase (decrease) by:
A. ($66,810)
B. $66,810
C. $34,300
D. ($34,300)
Answer: B
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When it comes to segmenting markets based on income, the group of American households that have between $100,000 and $250,000 in investable assets and is one of the fastest growing segments in the U.S. is referred to as ________ ________.
What will be an ideal response?
Lean systems do not need stable master production schedules
Indicate whether the statement is true or false
A party with whom you have a contract relationship has sued you. The contract between the two of you includes an arbitration clause. Which of the following statements is true?
a. If the party sues on a contract with an arbitration clause they are deemed to forfeit the dispute. b. Because one of the parties began the judicial process the judicial process must be completed before any arbitration can proceed. c. If the party sued rather than began the arbitration, the case can no longer be arbitrated. d. You have options. You could either answer the lawsuit and continue in litigation or make a motion to the court to compel arbitration.
CVP analysis can be used to study the effect of:
A. changes in fixed costs on a company's profitability. B. changes in product sales mix on a company's profitability. C. changes in selling prices on a company's profitability. D. changes in variable costs on a company's profitability. E. All of the answers are correct.