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Trivor, Inc., produces a special line of toy racing cars. Trivor produces the cars in batches. To manufacture each batch of cars, Trivor must set
Trivor, Inc., produces a special line of toy racing cars. Trivor produces the cars in batches. To manufacture each batch of cars, Trivor must set up the machines and molds. Setup costs are fixed batchlevel costs. In the long run, number of setuphours is the cost driver of set up costs. A separate Setup Department is responsible for setting up machines and molds for each style of car. The following information pertains to :
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Requirement a Calculate the spending variance for fixed setup overhead costs. Label the variance as favorable F or unfavorable U
The spending variance for fixed setup overhead costs is
Requirements
Calculate the following:
a The spending variance for fixed setup overhead costs
b The budgeted fixed setup overhead rate
c The productionvolume variance for fixed overhead setup costs
Trivor, Inc., produces a special line of toy racing cars. Trivor produces the cars in batches. To manufacture each batch of cars, Trivor must set up the machines and molds. Setup costs are fixed batchlevel costs. In the long run, number of setuphours is the cost driver of set up costs. A separate Setup Department is responsible for setting up machines and molds for each style of car. The following information pertains to :
Click the icon to view the information.
Read the requirements.
Requirement a Calculate the spending variance for fixed setup overhead costs. Label the variance as favorable F or unfavorable U
The spending variance for fixed setup overhead costs is
Data table
tabletableActualAmountstableStaticbudgetAmountsUnits produced and sold,,Batch size number of units per batchSetuphours per batch,,Total fixed setup overhead costs,$$
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