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Author Question: Bristol Fabricators, Inc., produces air purifiers in batches. To manufacture a batch of the ... (Read 37 times)

clippers!

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Bristol Fabricators, Inc., produces air purifiers in batches. To manufacture a batch of the purifiers, Bristol Fabricators, Inc., must set up the machines and assembly line tooling. 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 tooling for different models of the air purifiers.

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 June 2015:

BudgetActual
AmountsAmounts
Units produced and sold16,20015,000
Batch size (number of units per batch)460410
Setup-hours per batch87
Variable overhead cost per setup-hour$46$51
Total fixed setup overhead costs$33,809$33,709
Calculate the spending variance for fixed overhead setup costs.
◦ $100 unfavorable
◦ $220 unfavorable
◦ $100 favorable
◦ $220 favorable


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Marked as best answer by clippers! on Mar 6, 2021

taylorsonier

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clippers!

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Reply 2 on: Mar 6, 2021
YES! Correct, THANKS for helping me on my review


mohan

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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