Dave's Publishing Company specializes in printing specialty Textbooks for a small but profitable college market. Due to the high setup costs for each batch printed, Jo Nathan holds the book requests until demand for a book is approximately 500. At that point Dave will schedule the setup and production of the book. For rush orders, Dave will produce smaller batches for an additional charge of $700 per setup. Budgeted and actual costs for the printing process for the year were: Static Budget Actual Number of books produced 200,000 216,000 Average number of books per setup 500 480 Hours to set up printers 6 hours 6.5 hours Variable overhead cost per setup hour $100 $90 Total fixed setup overhead costs $72,000 $79,000 Required: 1. What is the static budget number of setups for the year? 2. What is the flexible budget number of setups for the year? What is the actual number of setups during the year? Assuming fixed setup overhead costs are allocated using setup - hours what is the predetermined fixed setup overhead allocation rate? 5. Does Dave's charge of $700 cover the budgeted variable overhead cost of an order? The budgeted total overhead costs 6. For variable setup overhead costs, calculate the rate and efficiency variances. 7. For fixed setup overhead costs, calculate the rate and the production volume variances. 8. Create a report that includes explanations of the above questions and the qualitative factors Dave should consider before accepting or rejecting a special order