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Bushnell, Inc. has a standard variable overhead rate of $4 per machine hour, with each completed unit expected to take three machine hours to produce. A review of the company's accounting records found the following:
Actual variable overhead: $210,000
Variable-overhead efficiency variance: $18,000U
Variable-overhead spending variance: $30,000F
How many units did Bushnell actually produce during the period?
Profit Sharing
Is a compensation strategy where employees receive a share of the company's profits, intended to motivate performance and align employee interests with business success.
Goal Incompatibility
A situation where the objectives of individuals or groups diverge, making it difficult for both parties to achieve their goals simultaneously.
Sales Bonuses
Additional financial compensation awarded to sales personnel for exceeding specified targets or performance levels.
Inventory Costs
The total costs associated with storing and managing goods until they are sold or used.
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