Purple Company Planned to Produce 12,000 Units

question 95

Multiple Choice

Purple Company planned to produce 12,000 units.Processing required 16,000 machine hours at a cost of $15,000 + $10.50 per machine hour.Actual sales were 14,000 units requiring 20,000 machine hours.Actual processing cost was $222,000._____ is the flexible-budget variance for processing.

• A)$3,000 favorable
• B)$39,000 unfavorable
• C)$3,000 unfavorable
• D)None of these answers is correct

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Definitions:

Webster-Hayne Debate

U.S. Senate debate of January 1830 between Daniel Webster of Massachusetts and Robert Hayne of South Carolina over nullification and states’ rights.

Federal Government

The national government of a federation, which holds authority over the entire territory of the federation, managing affairs that affect the country as a whole.

Nullify

To legally invalidate or render void an action, law, or agreement.

Worcester v. Georgia

A landmark Supreme Court case in 1832 that affirmed the sovereignty of Native American tribes, ruling that states could not impose their laws on Native American lands within their borders.