Question: c. When the ending inventory is classified as 40% complete then the finishing department will report an unfavorable variance ($9.60 actual cost versus $9.45 standard).
c.
When the ending inventory is classified as 40% complete then the finishing department will report an unfavorable variance ($9.60 actual cost versus $9.45 standard).
When the ending inventory is classified as 60% complete then the finishing department will report a favorable variance ($9.40 actual cost versus $9.45 standard).
It is quite obvious that motive of Mr. Sawyer is to manipulate the ending inventory balance for his self-interest as this doesn't suits to his image as a manager who controls cost.
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