Opal Manufacturing Company Established the Following Standard Price and Cost

question 131

Essay

Opal Manufacturing Company established the following standard price and cost information:
Opal expected to produce and sell 25,000 units. Actual production and sales amounted to 26,500 units.Required:
(a) Determine the sales volume variances, including variances for number of units, sales revenue, variable manufacturing cost, fixed manufacturing cost, and fixed selling and administrative cost.(b) Classify the variances as favorable (F) or unfavorable (U).(c) Comment on the usefulness of the variances with respect to performance evaluation.(d) Explain why the fixed cost variances are zero. $$\begin{array} { | l | r | } \hline \text { Sales price } & \$ 50 \text { per unit } \\\hline \text { Variable manufacturing cost } & 32 \text { per unit } \\\hline \text { Fixed manufacturing cost } & \$ 100,000 \text { total } \\\hline \text { Fixed selling and administrative cost } & \$ 40,000 \text { total } \\\hline\end{array}$$

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Definitions:

Generalist Intervention Model

A holistic approach in social work that encompasses a range of strategies and skills to assess and intervene in various individual, family, and community problems.

Generalizability

The extent to which findings or conclusions from a specific study can be applied to broader contexts or populations.

Evaluation

The systematic process of assessing the design, implementation, and outcomes of a project or program to determine its effectiveness or value.

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A parenting style that emphasizes punishment, often harsh, to control or correct undesired behaviors in children.