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Bristol Fabricators, Ic., produces air purifiers in batches. To manufacture a batch of the purifiers, Bristol Fabricators, Inc., hust set up the machines and assembly line tooling. Setup costs are batch-level costs because they are associated with atches rather than individual units of products. A separate Setup Department is responsible for setting up machines and poling 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 etup-hours. The following information pertains to June 2020: (Click the icon to view the information for June 2020.) Calculate the production-volume variance for fixed overhead setup costs. (Round all intermediary calculations to two decimal laces and your final answer to the nearest whole number.) OA. $2,478 unfavorable O B. $2,478 favorable Data Table O C. $363 favorable

Bristol Fabricators, Ic., produces air purifiers in batches. To manufacture a batch of the purifiers, Bristol Fabricators, Inc., hust set up the machines and assembly line tooling. Setup costs are batch-level costs because they are associated with atches rather than individual units of products. A separate Setup Department is responsible for setting up machines and poling 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 etup-hours. The following information pertains to June 2020: (Click the icon to view the information for June 2020.) Calculate the production-volume variance for fixed overhead setup costs. (Round all intermediary calculations to two decimal laces and your final answer to the nearest whole number.) OA. $2,478 unfavorable O B. $2,478 favorable Data Table O C. $363 favorable

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter15: Lean Accounting And Productivity Measurement
Section: Chapter Questions
Problem 1CE: Anderson Company has the following departmental manufacturing structure for one of its products:...
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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 2020: E (Click the icon to view the information for June 2020.) 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.) O A. $2,478 unfavorable O B. $2,478 favorable i Data Table C. $363 favorable O D. $363 unfavorable Budget Amounts Actual Amounts Units produced and sold Batch size (number of units per batch) Setup-hours per batch Variable overhead cost per setup-hour Total fixed setup overhead costs 16,100 445 15,000 405 7.75 $45 $36,300 $51 $35,937 Print Done Click to select your answer.
Transcribed Image Text: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 2020: E (Click the icon to view the information for June 2020.) 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.) O A. $2,478 unfavorable O B. $2,478 favorable i Data Table C. $363 favorable O D. $363 unfavorable Budget Amounts Actual Amounts Units produced and sold Batch size (number of units per batch) Setup-hours per batch Variable overhead cost per setup-hour Total fixed setup overhead costs 16,100 445 15,000 405 7.75 $45 $36,300 $51 $35,937 Print Done Click to select your answer.
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