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Author Question: Raposa, Inc., produces a special line of plastic toy racing cars. Raposa, Inc., produces the cars in ... (Read 99 times)

tth

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Raposa, Inc., produces a special line of plastic toy racing cars. Raposa, Inc., produces the cars in batches. To manufacture a batch of the cars, Raposa, Inc., must set up the machines and molds. 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 molds for different styles of car.

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:

ActualStatic-budget
AmountsAmounts
Units produced and sold14,55011,550
Batch size (number of units per batch)320295
Setup-hours per batch34
Variable overhead cost per setup-hour$43$38
Total fixed setup overhead costs$10,130$7,830
Calculate the spending variance for variable overhead setup costs. (Round all intermediary calculations two decimal places and your final answer to the nearest whole number.)
◦ $2,313 unfavorable
◦ $2,313 favorable
◦ $682 unfavorable
◦ $682 favorable


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Marked as best answer by tth on Mar 6, 2021

rosiehomeworddo

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tth

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


smrtceo

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Reply 3 on: Yesterday
Excellent

 

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