Fun Wheels, Inc, produces a special line of plastic toy racing cars. Fun Wheels, Inc, produces the cars in batches. To manufacture a batch of the cars, Fun Wheels, Inc., must set up the machines and molds. Setup costs are batch-level costs because they ara ass 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 2020

Calculate the efficiency variance for variable overhead setup costs. (Round all intermediary calculations two decimal places and your final answer to the nearest whole number.)

A. $1,717 favorable

B. $255 favorable

C. $255 unfavorable

D. $1,717 unfavorable

Data table Units produced and sold Batch size (number of units per batch) Setup-hours per batch Variable overhead cost per setup-hour Total foxed setup overhead costs Print Done