Q&A Hero

Q: Division A produces a part with the following characteristics: Division B, another division in the company, would like to buy this part from Division A. Division B is presently purchasing the part from an outside source at $28 per unit. If Division A sells to Division B, $1 in variable costs can be avoided. Suppose Division A is currently operating at capacity and can sell all of the units it produces on the outside market for its usual selling price. From the point of view of Division A, any sales to Division B should be priced no lower than: A. $27 B. $29 C. $20 D. $28 E. $21

Q: Division X makes a part with the following characteristics: Division Y of the same company would like to purchase 10,000 units each period from Division X. Division Y now purchases the part from an outside supplier at a price of $17 each. Suppose Division X has ample excess capacity to handle all of Division Y's needs without any increase in fixed costs and without cutting into sales to outside customers. If Division X refuses to accept the $17 price internally and Division Y continues to buy from the outside supplier, the company as a whole will be: A. worse off by $70,000 each period. B. better off by $10,000 each period. C. worse off by $60,000 each period. D. worse off by $20,000 each period. E. better off by $60,000 each period.

Q: The Milk Chocolate Division of Mmmm Foods, Inc. had the following operating results last year: Milk Chocolate expects identical operating results this year. The Milk Chocolate Division has the ability to produce and sell 200,000 pounds of chocolate annually. Assume that the Peanut Butter Division of Mmmm Foods wants to purchase an additional 20,000 pounds of chocolate from the Milk Chocolate Division. Assume that the Milk Chocolate Division is currently operating at its capacity of 200,000 pounds of chocolate. Also assume again that the Peanut Butter Division wants to purchase an additional 20,000 pounds of chocolate from Milk Chocolate. Under these conditions, what amount per pound of chocolate would Milk Chocolate have to charge Peanut Butter in order to maintain its current profit? A. $0.40 per pound B. $0.08 per pound C. $0.15 per pound D. $0.25 per pound E. $0.30 per pound

Q: The Milk Chocolate Division of Mmmm Foods, Inc. had the following operating results last year: Milk Chocolate expects identical operating results this year. The Milk Chocolate Division has the ability to produce and sell 200,000 pounds of chocolate annually. Assume that the Peanut Butter Division of Mmmm Foods wants to purchase an additional 20,000 pounds of chocolate from the Milk Chocolate Division. Milk Chocolate will be able to increase its profit by accepting any transfer price above: A. $0.40 per pound B. $0.08 per pound C. $0.15 per pound D. $0.25 per pound E. $0.10 per pound

Q: Division A makes a part that it sells to customers outside of the company. Data concerning this part appear below: Division B of the same company would like to use the part manufactured by Division A in one of its products. Division B currently purchases a similar part made by an outside company for $38 per unit and would substitute the part made by Division A. Division B requires 5,000 units of the part each period. Division A has ample capacity to produce the units for Division B without any increase in fixed costs and without cutting into sales to outside customers. If Division A sells to Division B rather than to outside customers, the variable cost be unit would be $1 lower. What should be the lowest acceptable transfer price from the perspective of Division A? A. $40 B. $38 C. $30 D. $29 E. $10

Q: Division X makes a part that it sells to customers outside of the company. Data concerning this part appear below: Division Y of the same company would like to use the part manufactured by Division X in one of its products. Division Y currently purchases a similar part made by an outside company for $49 per unit and would substitute the part made by Division X. Division Y requires 5,000 units of the part each period. Division X has ample excess capacity to handle all of Division Y's needs without any increase in fixed costs and without cutting into outside sales. According to the formula in the text, what is the lowest acceptable transfer price from the standpoint of the selling division? A. $50 B. $49 C. $46 D. $30 E. $20

Q: Division P of Turbo Corporation has the capacity for making 75,000 wheel sets per year and regularly sells 60,000 each year on the outside market. The regular sales price is $100 per wheel set, and the variable production cost per unit is $65. Division Q of Turbo Corporation currently buys 30,000 wheel sets (of the kind made by Division P) yearly from an outside supplier at a price of $90 per wheel set. If Division Q were to buy the 30,000 wheel sets it needs annually from Division P at $87 per wheel set, the change in annual net operating income for the company as a whole, compared to what it is currently, would be: A. $600,000 B. $225,000 C. $750,000 D. $135,000 E. $700,000

Q: Part WY4 costs the Eastern Division of Tyble Corporation $26 to make-direct materials are $10, direct labor is $4, variable manufacturing overhead is $9, and fixed manufacturing overhead is $3. Eastern Division sells Part WY4 to other companies for $30. The Western Division of Tyble Corporation can use Part WY4 in one of its products. The Eastern Division has enough idle capacity to produce all of the units of Part WY4 that the Western Division would require. What is the lowest transfer price at which the Eastern Division should be willing to sell Part WY4 to the Central Division? A. $30 B. $26 C. $23 D. $27 E. $21

Q: Division X makes a part that it sells to customers outside of the company. Data concerning this part appear below: Division Y of the same company would like to use the part manufactured by Division X in one of its products. Division Y currently purchases a similar part made by an outside company for $70 per unit and would substitute the part made by Division X. Division Y requires 5,000 units of the part each period. Division X can already sell all of the units it can produce on the outside market. What should be the lowest acceptable transfer price from the perspective of Division X? A. $75 B. $66 C. $16 D. $50 E. $25

Q: When the selling division in an internal transfer has unsatisfied demand from outside customers for the product that is being transferred, then the lowest acceptable transfer price as far as the selling division is concerned is: A. variable cost of producing a unit of product. B. the full absorption cost of producing a unit of product. C. the market price charged to outside customers, less costs saved by transferring internally. D. the amount that the purchasing division would have to pay an outside seller to acquire a similar product for its use. E. all the costs of producing a unit of product.

Q: Using the information below, compute the manufacturing cycle time: A. 7.5 hours. B. 6.5 hours. C. 8.0 hours. D. 80.0 hours. E. 7.1 hours.

Q: Which of the following statements is correct concerning the elements of cycle time? A. Move time is the time spent moving (1) raw materials from storage to production and (2) goods in process from one factory location to another factory location. B. Inspection time is the time spent producing the product. C. Process time is considered non-value-added time. D. Wait time is considered value-added time. E. Cycle efficiency is the ratio of non-value-added time to total cycle time.

Q: Which of the following represents the correct formula for calculating cycle time for a manufacturer? A. Process time + inspection time - move time - wait time. B. Process time - inspection time + move time + wait time. C. Process time + inspection time + move time + wait time. D. Process time - inspection time - move time - wait time. E. Process time + inspection time + move time - wait time.

Q: The following is a partially completed lower section of a departmental expense allocation spreadsheet for Stoneham. It reports the total amounts of direct and indirect expenses for the four departments. Purchasing department expenses are allocated to the operating departments on the basis of purchase orders. Maintenance department expenses are allocated based on square footage. Compute the amount of Maintenance department expense to be allocated to Fabrication. Purchasing Maintenance Fabrication Assembly Operating costs $32,000 $18,000 $96,000 $62,000 No. of purchase orders............... 16 4 Sq. ft. of space 3,300 2,700 A. $6,400. B. $9,900. C. $8,100. D. $9,000. E. $25,600.

Q: The following is a partially completed lower section of a departmental expense allocation spreadsheet for Stoneham. It reports the total amounts of direct and indirect expenses for the four departments. Purchasing department expenses are allocated to the operating departments on the basis of purchase orders. Maintenance department expenses are allocated based on square footage. Compute the amount of Purchasing department expense to be allocated to Assembly. Purchasing Maintenance Fabrication Assembly Operating costs $32,000 $18,000 $96,000 $62,000 No. of purchase orders............... 16 4 Sq. ft. of space 3,300 2,700 A. $6,400. B. $9,900. C. $8,100. D. $14,400. E. $25,600.

Q: The following is a partially completed lower section of a departmental expense allocation spreadsheet for Stoneham. It reports the total amounts of direct and indirect expenses for the four departments. Purchasing department expenses are allocated to the operating departments on the basis of purchase orders. Maintenance department expenses are allocated based on square footage. Compute the amount of Purchasing department expense to be allocated to Fabrication. Purchasing Maintenance Fabrication Assembly Operating costs $32,000 $18,000 $96,000 $62,000 No. of purchase orders............... 16 4 Sq. ft. of space 3,300 2,700 A. $6,400. B. $9,900. C. $8,100. D. $17,600. E. $25,600.

Q: Yoho Company reported the following financial numbers for one of its divisions for the year; average total assets of $5,800,000; sales of $5,375,000; cost of goods sold of $3,225,000; and operating expenses of $1,147,000. Assume a target income of 15% of average invested assets. Compute residual income for the division: A. $150,450. B. $196,750. C. $150,500. D. $133,000. E. $100,300.

Q: Yoho Company reported the following financial numbers for one of its divisions for the year; average total assets of $5,800,000; sales of $5,375,000; cost of goods sold of $3,225,000; and operating expenses of $1,147,000. Compute the divisions return on assets: A. 18.6%. B. 21.3%. C. 17.3%. D. 10.4%. E. 14.7%.

Q: Abbe Company reported the following financial numbers for one of its divisions for the year; average total assets of $4,100,000; sales of $4,525,000; cost of goods sold of $2,550,000; and operating expenses of $1,372,000. Assume a target income of 10% of average invested assets. Compute residual income for the division: A. $203,000. B. $193,000. C. $150,500. D. $ 60,300. E. $197,500.

Q: Abbe Company reported the following financial numbers for one of its divisions for the year; average total assets of $4,100,000; sales of $4,525,000; cost of goods sold of $2,550,000; and operating expenses of $1,372,000. Compute the divisions return on assets: A. 30.3%. B. 23.6%. C. 13.3%. D. 10.4%. E. 14.7%.

Q: A system of performance measures, including nonfinancial measures, used to assess company and division manager performance is: A. Hurdle rate. B. Return on investment. C. Balanced scorecard. D. Residual income. E. Investment turnover.

Q: For an investment center, the hurdle rate is: A. The cost of obtaining financing. B. The desired return on investments. C. The difference between the projected rate and the earned rate. D. Not evaluated in determining the performance of an investment center. E. Not important to management.

Q: Mach Co. operates three production departments as profit centers. The following information is available for its most recent year. Which department has the greatest departmental contribution to overhead and what is the amount contributed? Cost of Direct Indirect Dept. Sales Goods Sold Expenses Expenses 1 $1,000,000 $700,000 $100,000 $ 80,000 2 400,000 150,000 40,000 100,000 3 700,000 300,000 150,000 20,000 A. Dept. 3; $ 400,000. B. Dept. 1; $1,000,000. C. Dept. 2; $ 100,000. D. Dept. 3; $ 250,000. E. Dept. 2; $ 150,000.

Q: Mach Co. operates three production departments as profit centers. The following information is available for its most recent year. Department 1's contribution to overhead as a percent of sales is: Cost of Direct Indirect Dept. Sales Goods Sold Expenses Expenses 1 $1,000,000 $700,000 $100,000 $ 80,000 2 400,000 150,000 40,000 100,000 3 700,000 300,000 150,000 20,000 A. 8%. B. 40%. C. 20%. D. 30%. E. 12%.

Q: The Footwear Department of Lee's Department Store had sales of $188,000, cost of goods sold of $132,500, indirect expenses of $13,250, and direct expenses of $27,500 for the current period. The Footwear Department's contribution to overhead as a percent of sales is: A. 7.8%. B. 14.9%. C. 29.5%. D. 66.7%. E. 85.4%.

Q: Departmental contribution to overhead is calculated as revenues of the department less: A. Controllable costs. B. Product and period costs. C. Direct expenses. D. Direct and indirect costs. E. Joint costs.

Q: The amount by which a department's revenues exceed its direct expenses is: A. Net sales. B. Gross profit. C. Departmental profit. D. Contribution margin. E. Departmental contribution to overhead.

Q: Jamesway Corporation has two separate divisions that operate as profit centers. The following information is available for the most recent year: White Division Grey Division Sales (net).................. $200,000 $400,000 Salary expense........... 28,000 48,000 Cost of goods sold..... 100,000 159,000 The White Division occupies 20,000 square feet in the plant. The Grey Division occupies 30,000 square feet. Rent is an indirect expense and is allocated based on square footage. Rent expense for the year was $50,000. Compute departmental income for the White and Grey Divisions, respectively. A. $52,000; $163,000. B. $172,000; $352,000. C. $72,000; $163,000. D. $72,000; $193,000. E. $100,000; $241,000.

Q: Jamesway Corporation has two separate divisions that operate as profit centers. The following information is available for the most recent year: White Division Grey Division Sales (net).................. $200,000 $400,000 Salary expense........... 28,000 48,000 Cost of goods sold...... 100,000 159,000 The White Division occupies 20,000 square feet in the plant. The Grey Division occupies 30,000 square feet. Rent is an indirect expense and is allocated based on square footage. Rent expense for the year was $50,000. Compute gross profit for the White and Grey Divisions, respectively. A. $72,000; $193,000. B. $172,000; $352,000. C. $100,000; $241,000. D. $52,000; $163,000. E. $72,000; $163,000.

Q: In the preparation of departmental income statements, the preparer completes the following steps in the following order: A. Identify direct expenses; allocate indirect expenses; allocate service department expenses. B. Identify indirect expenses; allocate direct expenses; allocate service department expenses. C. Identify service department expenses; allocate direct expenses; allocate indirect expenses. D. Identify direct expenses, allocate service department expenses; allocate indirect expenses. E. Allocate all expenses.

Q: Rent and maintenance expenses would most likely be allocated based on: A. Sales volume by department. B. Square feet of floor space occupied. C. Number of hours worked. D. Number of invoices processed. E. Number of employees in each department.

Q: A firm produces and sells two products, Mica and Plax. The following information is available relating to setup costs (a part of factory overhead): Mica Plax Units produced.................... 200 16,000 Batch size (units)................. 10 400 Number of setups............... 20 40 Direct labor hours per unit... 5 5 Total direct labor hours....... 1,000 80,000 Cost per setup.................... $ 1,080 Total setup cost.................. $64,800 Using number of setups as the activity base, the amount of setup cost allocated to each unit of product for Mica and Plax, respectively is: A. $21.60; $.54. B. $54.00; $27.00. C. $60.00; $60.00. D. $108.00; $2.70. E. $200.00; $16,000.00

Q: A firm produces and sells two products, Mica and Plax. The following information is available relating to setup costs (a part of factory overhead): Mica Plax Units produced.................... 200 16,000 Batch size (units)................. 10 400 Number of setups................. 20 40 Direct labor hours per unit... 5 5 Total direct labor hours....... 1,000 80,000 Cost per setup...................... $ 1,080 Total setup cost................... $64,800 With traditional two-stage allocation of overhead costs, using direct labor hours as the allocation base, the setup cost portion of overhead that is allocated to each unit of product for Mica and Plax, respectively is: A. $.80; $.80. B. $3.20; $3.20. C. $4.00; $4.00. D. $160.00; $12,800.00. E. $200.00; $16,000.00.

Q: A college uses advisors who work with all students in all divisions of the college. The most useful allocation basis for the salaries of these employees would likely be: A. number of classes offered in each division. B. student graduation rate. C. square footage of each division. D. number of students advised from each division. E. relative salaries of division heads.

Q: Mace Department store allocates its service department expenses to its various operating (sales) departments. The following data is available: Expense Basis for allocation Amount Rent Square feet of floor space $24,000 Advertising Amount of dollar sales $30,000 Administrative Number of employees $45,000 The following information is available for its three operating (sales) departments: Square Dollar Number of Department Feet Sales employees A 3,000 $280,000 6 B 3,400 $300,000 8 C 3,600 $420,000 10 What is the total expense allocated to Department B? A. $29,375. B. $30,462. C. $30,500. D. $30,775. E. $32,160.

Q: Farber, Inc., has four departments. The Administrative Department costs are allocated to the other three departments based on the number of employees in each and the Maintenance Department costs are allocated to the Assembly and Packaging Departments based on their occupied space. Data for these departments follows: Operating costs................ No. of employees ................ Sq. ft. of space................ Admin. Maintenance Assembly Packaging $30,000 $15,000 2 $70,000 6 2,000 $45,000 4 3,000 The total amount of the Administrative Department's cost that would eventually be allocated to the Packaging Department is: A. $ 4,800. B. $12,000. C. $10,000. D. $18,000. E. $13,000.

Q: White Company has two service departments and two operating (production) departments. The Payroll Department services all three of the other departments in proportion to the number of employees in each. The Maintenance Department costs are allocated to the two operating departments in proportion to the floor space used by each. Listed below are the operating data for the current period: Service Depts. Production Depts. Payroll Maintenance Milling Assembly Direct costs............... $20,400 $25,500 $76,500 $105,400 No. of personnel....... 15 15 45 Sq. ft. of space......... 10,000 15,000 The total cost of operating the Milling Department for the current period is: A. $14,280. B. $15,912. C. $76,500. D. $90,780. E. $92,412.

Q: Wilson Trade School allocates administrative costs to its respective departments based on the number of students enrolled, while maintenance and utilities are allocated per square feet of the classrooms. Based on the information below, what is the total amount allocated to the Automotive Department (rounded to the nearest dollar) if administrative costs for the school were $50,000, maintenance fees were $12,000, and utilities were $6,000? Department Students Classrooms Electrical............ 120 10,000 sq. ft. Automotive. 70 12,000 sq. ft. Secretarial 50 8,000 sq. ft. Plumbing. 40 6,000 sq. ft...................... . A. $ 0. B. $17,000. C. $18,500. D. $22,667. E. $30,000.

Q: Able Company has two operating (production) departments: Assembly and Fabricating. Assembly has 150 employees and occupies 44,000 square feet; Fabricating has 100 employees and occupies 36,000 square feet. Indirect factory expenses for the current period are as follows: Administration $ 80,000 Maintenance $100,000 Administration is allocated based on workers in each department; maintenance is allocated based on square footage. The total amount of indirect factory expenses that should be allocated to the Assembly Department for the current period is: A. $ 48,000. B. $ 55,000. C. $103,000. D. $104,000. E. $110,000.

Q: A company pays $15,000 per period to rent a small building that has 10,000 square feet of space. This cost is allocated to the company's three departments on the basis of the amount and value of the space occupied by each. Department One occupies 2,000 square feet of ground-floor space, Department Two occupies 3,000 square feet of ground-floor space, and Department Three occupies 5,000 square feet of second-floor space. If rents for comparable floor space in the neighborhood average $2.20 per square foot for ground-floor space and $1.10 per square foot for second-floor space and the rent is allocated based on the total value of the space, Department One should be charged rent expense for the period of: A. $4,400. B. $4,000. C. $3,000. D. $2,200. E. $2,000.

Q: A company rents a building with a total of 100,000 square feet, which are evenly divided between two floors. The space on the first floor is considered twice as valuable as that on the second floor. The total monthly rent for the building is $30,000. How much of the monthly rental expense should be allocated to a department that occupies 10,000 square feet on the first floor? A. $6,000. B. $5,000. C. $3,000. D. $4,000. E. $2,000.

Q: In a firm that manufactures clothing, the department that is responsible for actually assembling the garments could best be described as a: A. Service department. B. Operating or production department. C. Cost center. D. Department in which all of the costs incurred are direct expenses. E. Department in which all of the costs incurred are indirect expenses.

Q: The amounts in a flexible budget are based on one expected level of sales or production.

Q: Fixed budget performance reports compare actual results with the expected amounts in the fixed budget.

Q: Management by exception allows managers to focus on the most significant variances in performance.

Q: Within the same budget performance report, it is impossible to have both favorable and unfavorable variances.

Q: A cost variance equals the sum of the quantity variance and the price variance.

Q: A budget performance report that includes variances can have variances caused by both price differences and quantity differences.

Q: A cost variance is the difference between actual cost and standard cost.

Q: While companies strive to achieve ideal standards, reality implies that some loss of materials usually occurs with any process.

Q: Companies promoting continuous improvement strive to achieve practical standards rather than ideal standards.

Q: When standard costs are used, factory overhead is assigned to products with a predetermined standard overhead rate.

Q: Standard costs provide a basis for assessing the reasonableness of actual costs incurred for producing a product or service.

Q: Standard material, labor, and overhead costs can be obtained from standard cost tables published by the Institute of Management Accountants.

Q: At the end of the accounting period, immaterial variances are closed to _____________.

Q: The fixed overhead variance can be broken down into the _________________ variance and the _________________ variance.

Q: The sum of the variable overhead spending variance, the variable overhead efficiency variance, the fixed overhead spending variance is the ____________________________.

Q: The difference between the actual overhead cost incurred and the standard overhead applied is the __________________________.

Q: If actual price per unit of materials is greater than the standard price per unit of materials, the direct materials price variance is _______________________.

Q: In preparing flexible budgets, the costs that remain constant in total are _______________ costs. Those costs that change in total are _______________ costs.

Q: The difference between the flexible budget sales and the fixed budget sales is called the __________________________ variance.

Q: The difference between the actual sales and the flexible budget sales is called the ______________________ variance.

Q: A _______________________ contains relevant information that compares actual results to planned activities.

Q: A favorable variance for a cost means that when compared to the budget, the actual cost is ____________________ than the budgeted cost.

Q: A management approach that emphasizes significant differences from plans is known as ___________________.

Q: In the analysis of variances, management commonly focuses on four categories of production costs: __________________ cost, ___________________ cost; _____________ cost; and _________________ cost.

Q: Direct materials variances are called price and quantity variances. However, when referring to direct labor, these variances are usually called _________________ and _____________ variances.

Q: Differences between actual costs and standard costs are known as _______________. These differences may be subdivided into ______________ and _________________.

Q: A standard that takes into account the reality that some loss usually occurs with any process under normal application of the process is known as a _______________ standard.

Q: Companies promoting continuous improvement strive to achieve _____________ standards by eliminating inefficiencies and waste.

Q: __________ are preset costs for delivering a product or service under normal conditions.

Q: Gates Company collected the following data regarding production of one of its products. Compute the variable overhead cost variance, the variable overhead spending variance, the variable overhead efficiency variance, the fixed overhead cost variance, the fixed overhead spending variance, and the fixed overhead volume variance.

Q: Gates Company reports the following information regarding the production on one of its products for the month. Compute the direct labor cost variance, the direct labor rate variance, the direct labor efficiency variance and identify each as either favorable or unfavorable. Direct labor standard (2 hrs. @ $15/hr.) $30 per finished unit Actual direct labor hours 60,800 hrs. Actual finished units produced 30,000 units Actual cost of direct labor $905,920

Q: Gates Company reports the following information regarding the production on one of its products for the month. Compute the direct materials cost variance, the direct materials price variance, the direct materials quantity variance and identify each as either favorable or unfavorable. Direct materials standard (6 lbs. @ $3/lb.) $18 per finished unit Actual direct materials used 179,000 lbs. Actual finished units produced 30,000 units Actual cost of direct materials used $554,900

Q:

Q: Chips Co. assigned direct labor cost to its products in May for 1,300 standard hours of direct labor at the standard $8 per hour rate. The direct labor rate variance for the month was $200 favorable and the direct labor efficiency variance was $150 favorable. Prepare the journal entry to charge Goods in Process Inventory for the standard labor cost of the goods manufactured in May and to record the direct labor variances. Assuming that the direct labor variances are immaterial, prepare the journal entry that Chips would make to close the variance accounts.

Q: Cheshire, Inc. allocates fixed overhead at a rate of $18 per direct labor hour. This amount is based on 90% of capacity or 3,600 direct labor hours for 6,000 units. During May, Cheshire produced 5,500 units. Budgeted fixed overhead is $66,000, and overhead incurred was $67,000. Required: Determine the volume variance for May.

Q: Selected information from Michaels Company's flexible budget is presented below: Operating Levels 80% 90% 100% Budgeted production in units 4,800 5,400 6,000 Budgeted labor (standard hours) Budgeted overhead: 9,600 10,800 12,000 Variable overhead $86,400 $97,200 $108,000 Fixed overhead 63,600 63,600 63,600 Michaels Company applies overhead to production at a rate of $31.25 per unit based on a normal operating level of 80% of capacity. For the current period, Michaels Company produced 5,400 units and incurred $62,000 of fixed overhead costs and $96,000 of variable overhead costs. The company used 11,000 labor hours to produce the 5,400 units. Calculate the variable overhead spending and efficiency variances, and the fixed overhead spending and volume variances. Indicate whether each variance is favorable or unfavorable.

Q: During November, Heim Company allocated overhead to products at the rate of $26.00 per direct labor hour. This figure was based on 80% of capacity or 1,600 direct labor hours. However, Heim Company operated at only 70% of capacity, or 1,400 direct labor hours. Budgeted overhead at 70% of capacity is $38,900, and overhead actually incurred was $38,000. What is the company's volume variance for November? (Indicate whether the variance is favorable or unfavorable)

Q: A company's flexible budget for 36,000 units of production showed variable overhead costs of $54,000 and fixed overhead costs of $50,000. The company actually incurred total overhead costs of $95,300 while operating at a volume of 32,000 units. What is the controllable variance?