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1. When the actual sales-mix shifts toward a mix of products with lower contribution margins, there will be negative effects on a firm's:

• Sales mix and sales quantity variances.

• Sales volume and market mix variances.

• Sales quantity and sales volume variances.

The following information for the past year is available from Gas Company, a company that uses machine hours to apply standard factory overhead cost to outputs:

Actual total factory overhead cost incurred	$ 31,000
Actual fixed overhead cost incurred	$ 18,000
Budgeted fixed overhead cost	$ 13,000
Actual machine hours	8,000
Standard machine hours allowed for the units manufactured	5,500
Denominator volumemachine hours	6,200
Standard variable overhead rate per machine hour	$ 3

2. Under a three-variance breakdown (decomposition) of the total factory overhead variance, the total factory overhead spending variance is:

• $6,000 favorable.

• $4,600 unfavorable.

• $0.

• $5,400 favorable.

• $5,400 unfavorable.

• Sales mix and sales volume variances.

• Market mix and sales mix variance.

3. The master budget variance for a period reveals whether a company has achieved:

• The sales level budgeted for the period.

• Control of total expenses for the period.

• Control of basic business processes.

• An adequate return on investment (assets) during the period.

• The master budgeted operating income for the period.

4. The development and implementation of a comprehensive framework for managing and controlling quality is best accomplished through which type of company interaction?

• Executive decision making.

• Board of directors meeting.

• Divisional interaction.

• Market research.

• Cross-functional effort.

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