Answer the Following Question(s)using the Information Below

question 45

Multiple Choice

Answer the following question(s) using the information below.Lukehart Industries Inc.produces air purifiers in batches.To manufacture a batch of the purifiers Lukehart Inc.must setup 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 2012:

-Calculate the production-volume variance for fixed setup overhead costs.

• A)$1,800 favourable
• B)$1,800 unfavourable
• C)$250 unfavourable
• D)$250 favourable
• E)$114 unfavourable

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Definitions:

Sublingual Tablet

A medication designed to be placed under the tongue for absorption into the bloodstream.

Swallow

The act of making a muscular movement of the throat to pass something from the mouth to the stomach.

Transdermal Fentanyl

A potent synthetic opioid analgesic used in a patch form to deliver pain medication through the skin over an extended period.

Medication Patch

A transdermal patch that delivers medication directly through the skin into the bloodstream for systemic treatment.