Speedy Corporation manufactures two models of cars, a standard and an executive model. The following activity and cost information has been compiled: Number of Setups 21 19 $55,700 Product Standard Executive Overhead costs Number of Number of Components Direct Labor Hours 185 200 17 10 $49,900 Number of setups and number of components are identified as activity-cost drivers for overhead. Assuming an activity-based costing system is used: Required: A. what is the total amount of overhead costs assigned to the executive model? B. Explain why and how ABC systems are of great use for service companies. Units sold Variable costs Fixed costs Question 4 (25 marks) Scooby Corporation used the following data to evaluate its current operating system. The company sells pet items for $32 each and used a budgeted selling price of $32 per unit. Actual Budgeted 165,000 units 190,000 units $2,550,000 $2,290,000 $1,050,000 $1,580,000 Required: A. What is the static-budget variance of operating income? B. Provide some reasons as to what may have caused the revenue and cost variances.