Sweeney Company's 2014 responsibility accounting report includes the following:
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Per Unit Variable Costs:
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Standard
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Actual
|
|
Materials Cost
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$22.00
|
$21.80
|
|
Customer Delivery Cost
|
1.90
|
1.95
|
|
Inspection Cost
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1.20
|
1.16
|
|
Sales Commissions
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4.00
|
4.20
|
|
|
|
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Fixed Costs:
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|
|
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Manufacturing
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$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.