Kramer Company Planned to Produce 12,000 Units

question 120

Multiple Choice

Kramer Company planned to produce 12,000 units. This level of activities required 20 set- ups at a cost of $18,000 plus $500 per set- up. Actual sales were 10,000 units, requiring 15 set- ups and 12,000 machine hours. Actual set- up cost was $26,000. is the flexible- budget variance for set- ups.

• A) $2,000 favorable
• B) $500 favorable
• C) $500 unfavorable
• D) $2,000 unfavorable

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Definitions:

Collective Work

Efforts undertaken by a group of individuals working together towards a common goal or project.

Personal Accountability

The willingness to take responsibility for one's own actions and their outcomes.

Loss of Individuality

The process through which individuals feel they are losing their unique identity and becoming indistinguishable from others.

Self-Awareness

The conscious knowledge of one's own character, feelings, motives, and desires.