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

question 111

Multiple Choice

Rollo 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 due to

• A) favorable variance on fixed costs.
• B) unfavorable variance on fixed costs.
• C) favorable variance on variable costs.
• D) unfavorable variance on variable costs.

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Definitions:

Cultural Beliefs

Shared ideas that are accepted as true by a particular group of people, shaping their values, norms, and behaviors.

Practices

Commonly refers to habitual actions or behaviors that are a part of the daily lives of individuals or groups within a society.

Talcott Parsons

An influential American sociologist known for his theories on social action, systems theory, and the role of values in social order.

Goal-attainment Imperative

A concept in sociology and organizational theory indicating that organizations and societies mobilize resources and establish procedures to achieve specific goals.