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Johnson, Inc.,?has established per-unit standards for material and labor for its production department based on 900 units of normal production capacity as shown below.  During the year, 1,000 units were produced. The accounting department has charged the production department supervisor with the following unfavorable variances.  Bob Sterling, the production supervisor, has received a memorandum from his boss stating that he did not meet the established standards for material prices and quantity, and corrective action should be taken. Sterling is very unhappy about the situation and is preparing to reply to the memorandum explaining the reasons for his dissatisfaction. All of the following are valid reasons for Sterling’s dissatisfaction except that theA. Material price variance is the responsibility of the purchasing department. B. Cause of the unfavorable material usage variance was the acquisition of substandard material. C. Standards have not been adjusted to the engineering changes. D. Variance calculations fail to properly reflect that actual production exceeded normal production capacity. |