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Calculate the productionvolume variance for fixed overhead setup costs. (Round all intermediary calculations to two decimal places and your final answer to the nearest whole
Calculate the
productionvolume variance for fixed overhead setup costs. (Round all intermediary calculations to two decimal places and your final answer to the nearest whole number.)
Raposa, Inc., produces a special line of plastic toy racing cars. Raposa, Inc., produces the cars in batches. To manufacture a batch of the cars, Raposa, Inc., 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 car. 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 June 2015: Actual Amounts 15,600 300 3 $42.00 $16,450 Static - budget Amounts 11,850 260 Units produced and sold Batch size (number of units per batch) Setup-hours per batch Variable overhead cost per setup-hour Total fixed setup overhead costs 4 $39.00 $16,286 O A. $71 unfavorable B. $71 favorable OC. $5,153 favorable OD. $5,153 unfavorable Click to select yourStep by Step Solution
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