QUESTION 4 1 po Fayer Products Ltd. produces water glasses in batches. To manufacture a batch of glasses Fayer must setup 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 glasses 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 July. Units produced and sold Batch size (number of units per batch) Setup hours per batch Actual Amounts 15,000 250 Static-budget Amounts 11,250 5.25 S38 Variable overhead cost per setup hour Total fixed setup overhead costs $40 $14400 $14,000 Calculate the rate variance for variable setup overhead costs $600 unfavourable $600 favourable $1,900 unfavourable $1,900 favourable