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Brady, Inc. uses a normal absorption costing system in which the overhead rate and variable manufacturing costs have remained unchanged for the last 2 years. During the current year the following activity occurred: Denominator volume 25,000 units
Unit sales 20,000 units
Cost of goods sold $170,000
Volume variance $5,040 Unfavourable
Operating income after adjusting for
The volume variance $40,000
Budgeted fixed overhead $90,000
The firm had no beginning or ending work in process inventories. However, there were 1,000 units in beginning finished goods.
The fixed overhead in cost of goods sold amounted to:
Groupthink
A pattern of thinking that occurs when a cohesive group minimizes or ignores members’ differences of opinion.
Highly Cohesive
Describes a group, material, or entity that is united and works well together, showing a strong sense of togetherness or bond.
External Threat
A danger originating outside an organization or individual, potentially causing harm or disruption.
Group Polarization
A pattern in group discussions in which each member’s attitudes become more extreme, even though the discussion draws attention to arguments that could have moderated their views.
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