The Pennino Company specializes in making fraternity and sorority T-shirts for the college market. Due to the high setup costs for each batch printed, Pennino holds the T-shirt requests until demand is approximately 140 shirts. At that point Pennino will schedule the setup and production of the shirts. For rush orders, Pennino will produce smaller batches for an additional charge of $157 per setup. Budgeted and actual costs for the printing process for 2017 were as follows: |(Click the icon to view the budgeted and actual costs.) Read the requirements. Requirement 1. What is the static budget number of setups for 2017? Determine the formula, then compute the static budget number of setups. Static budget II number of setups + = II Data Table Static-Budget Amounts Actual Results 168,000 137,200 140 98 Number of shirts produced Average number of shirts per setup Hours to set up machines Direct variable cost per setup-hour Total fixed setup overhead costs 6 8 $ 25 $ 31 $ 28,800 $ 23,000 - Denuirements Requirements 1. What is the static budget number of setups for 2017? 2. What is the flexible-budget number of setups for 2017? 3. What is the actual number of setups in 2017? 4. Assuming fixed setup overhead costs are allocated using setup-hours, what is the predetermined fixed setup overhead allocation rate? 5. Does Pennino's charge of $157 cover the budgeted variable overhead cost of an order? The budgeted total cost? 6. For direct variable setup costs, compute the price and efficiency variances. 7. For fixed setup overhead costs, compute the spending and the production-volume variances. 8. What qualitative factors should Pennino consider before accepting or rejecting a special order