Q2. [30% of test] Rae Steven Publishing Company specializes in printing specialty textbooks for a small but profitable college market. Due to the high setup costs for each batch printed, Rae Steven holds the book requests until demand for a book is approximately 500. At that point Rae Steven will schedule the setup and production of the book. For rush orders, Rae Steven will produce smaller batches for an additional charge of $650 per setup. Budgeted and actual costs for the printing process for 2014 were as follows: Static-Budget Amounts Actual Results Number of books produced 200,000 216,000 Average number of books per setup 500 450 Hours to set up printers 6 hours 6.5 hours Direct variable cost per setup-hour $100 $90 Total fixed setup overhead costs $74,400 $76,500 1. What is the actual number of setups in 2014? times. 2. Assuming fixed setup overhead costs are allocated using setup-hours, what is the predetermined fixed setup overhead allocation rate?_$_ 3. Does Rae Steven's charge of $850 cover the budgeted direct variable cost of an order? [Y/N] The budgeted total cost? [Y/N] 4. For direct variable setup costs, compute the price variance $_ and efficiency _variances. 5. For fixed setup overhead costs, compute the spending variance $ and the production-volume $ variances