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5. Lillian's Molds is a custom-made mold company to customer orders. Two employees run machines, and their combined salary and benefits are $160,000 per year.
5. Lillian's Molds is a custom-made mold company to customer orders. Two employees run machines, and their combined salary and benefits are $160,000 per year. An order consists of anything from 50,000 to 500,000 units. Eighty orders were placed during 2019. The total number of units produced was 8 million. A. If the company allocates the cost of the setup mechanics based on the number of setups, the setup costs to be allocated to an order of 300,000 molds would be: a. $4,000 b. $2,000 c. $1,000 d. $0 B. If the company allocates the cost of the setup mechanics based on the number of units produced, the setup cost per unit in an order of 300,000 molds would be: a. $0.053 per unit b. $0.006 per unit c. $0.02 per unit d. $0 6. Generally a variance should be investigated if: a. Benefits of investigation are greater than zero b. The variance is unfavorable c. The benefits of investigation exceed the cost of investigation d. The variance is favorable
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