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

waynest · **on:** Mar 6, 2021

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:

Budget

Actual

Amounts

Units produced and sold

14,100

13,000

Batch size (number of units per batch)

420

395

Setup-hours per batch

8

7

Variable overhead cost per setup-hour

$51

$55

Total fixed setup overhead costs

$36,300

$35,937

Calculate the production-volume variance for fixed overhead setup costs. (Round all intermediary calculations to two decimal places and your final answer to the nearest whole number.)
◦ $2,832 favorable
◦ $2,832 unfavorable
◦ $363 unfavorable
◦ $363 favorable

Kedrick2014 · **Reply #1 on:** Mar 6, 2021

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