Mattison Company Has Developed Cost Formulas for the Drivers of the Following

question 105

Multiple Choice

Mattison Company has developed cost formulas for the drivers of the following production activities: If the actual activity was 20 setups and the actual fixed cost for inspections was $28,000 and the variable cost for inspections was $5,000, the total variance for inspections is

• A) $1,000 favorable.
• B) $2,000 favorable.
• C) $1,000 unfavorable.
• D) $2,000 unfavorable.

---

Definitions:

Repeat Purchases

The act of buying a product or service again, demonstrating customer loyalty and satisfaction with the previous purchase.

Premium

An amount paid for an insurance policy or an additional cost for an item or service that is of higher quality or offers more features than a standard version.

Sales Promotion Tool

Marketing strategies or devices designed to temporarily boost sales or attract customer interest.

Rebate

A refund given to consumers after they've purchased an item, often used as an incentive for sales.