Tangerine Inc. produces plastic grocery bags. Tangerine has developed a static budget for the month of July based on 9,000 direct labor hours. During the quarter, the actual activity was 10,000 direct labor hours. Data for July are summarized as follows: Static budget (9,000 hours) Actual costs (10,000 hours) Direct materials cost $106,000 $128,000 Power 50,000 57,000 Salary of plant supervisor 9,000 9,000 Total $165,000 $194,000 Comparing the static budget to the actual costs, we can conclude that:a. the plant manager should be dismissed. b. power variance is unfavorable. c. direct materials variance is favorable. d. the plant manager was clearly not efficient. e. None of these choices are correct.

The following selected circumstances relate to pending lawsuits for erismus, inc. erismus’s fiscal year ends on december 31. financial statements are issued in march 2019. erismus prepares its financial statements according to u.s. gaap. required: indicate the amount erismus would record as an asset, liability, or not accrued in the following circumstances. 1. erismus is defending against a lawsuit. erismus's management believes the company has a slightly worse than 50/50 chance of eventually prevailing in court, and that if it loses, the judgment will be $1,000,000. 2. erismus is defending against a lawsuit. erismus's management believes it is probable that the company will lose in court. if it loses, management believes that damages could fall anywhere in the range of $2,000,000 to $4,000,000, with any damage in that range equally likely. 3. erismus is defending against a lawsuit. erismus's management believes it is probable that the company will lose in court. if it loses, management believes that damages will eventually be $5,000,000, with a present value of $3,500,000. 4. erismus is a plaintiff in a lawsuit. erismus's management believes it is probable that the company eventually will prevail in court, and that if it prevails, the judgment will be $1,000,000. 5. erismus is a plaintiff in a lawsuit. erismus’s management believes it is virtually certain that the company eventually will prevail in court, and that if it prevails, the judgment will be $500,000.