1. Montgomery Corporation produces a special line of camera tile bridges. Montgomery Corporation produces the tile bridges in batches. To manufacture a batch of the tile bridges, Montgomery Corporation must set up the machines and molds. Setup costs are batch-level costs because they are associated with batches rather than individual units of products. A separate Setup Department is responsible for setting up machines and molds for different styles of tile bridges Setup overhead costs consist of some costs that are variable and some costs that are fixed with respect to the number of setup-hours. The following information pertains to January 2005 Static-budget Amounts 30,000 200 Actual Amounts 28,000 250 Tile Batch size (number of units per batch) Setup-hours per batch Variable overhead cost per setup hour Total fixed setup overhead costs Bridges produced and sold $10 $22,500 $9 $21,000 Required: a. Calculate the efficiency variance for variable overhead setup costs. b. Calculate the spending variance for variable overhead setup costs. c. Calculate the flexible-budget variance for variable overhead setup costs. d. Calculate the spending variance for fixed overhead setup costs. e. Calculate the production-volume variance for fixed overhead setup costs