Ben Company Planned to Produce 12,000 Units

question 111

Multiple Choice

Ben Company planned to produce 12,000 units.This level of production required 20 setups at a cost of $18,000 plus $500 per setup.Actual production was 10,000 units,requiring 15 setups.Actual setup cost was $26,000.What is the static budget variance for setup costs?

• A)$2,000 Favorable
• B)$2,000 Unfavorable
• C)$2,500 Favorable
• D)$2,500 Unfavorable

---

Definitions:

Newport Beach

A coastal city in Orange County, California, known for its large, boat-filled harbor, beaches, and upscale residential areas.

Emotional Reasoning

A cognitive process where a person concludes that their emotional reaction reflects the way things really are, despite contrary empirical evidence.

Wilhelm Wundt

A psychologist often regarded as the father of experimental psychology, known for establishing the first psychology laboratory.

Psychology

The scientific study of the human mind and its functions, especially those affecting behavior in a given context.