Stein Company Planned to Produce 12,000 Units

question 31

Multiple Choice

Stein 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 flexible budget variance for setup costs?

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

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Definitions:

Steinzor Effect

A phenomenon observed in communication patterns within groups, suggesting that individuals tend to respond more frequently to the last person who has spoken, influencing the flow of discussion.

Sitting Position

The manner in which an individual positions themselves while seated, which can affect their posture and health.

Directly Across

Refers to a position or location that is exactly opposite or facing another, often used in spatial or physical contexts.

Overstaffed

A situation where there are more employees than necessary within an organization or team, often leading to inefficiency and increased costs.