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

question 4

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.

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Definitions:

Collateral Promise

A secondary agreement made to take responsibility for another's performance under a contract, often requiring a writing to be enforceable.

Personnel Manager

An individual responsible for overseeing the human resource department of an organization, dealing with staffing, training, and employee welfare.

Statute of Frauds

A legal principle that requires certain contracts to be in writing and signed by all parties involved to be enforceable.

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise that the other party has reasonably relied on to their detriment.