Answer the Following Questions Using the Information Below

question 89

Multiple Choice

Answer the following questions using the information below:
Munoz, Inc., produces a special line of plastic toy racing cars. Munoz, Inc., produces the cars in batches. To manufacture a batch of the cars, Munoz, Inc., must set up the machines and molds. 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 molds for different styles of car.
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 2011:

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

• A)$3,325 unfavorable
• B)$400 unfavorable
• C)$3,325 favorable
• D)$400 favorable

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Definitions:

Contraries

Things or propositions that are opposite in nature, characteristic, or definition.

Universal

Including, relating to, or affecting all members of the class or group under consideration.

Particular

Referring to a specific detail or instance among general examples.

Associative Play

A stage of play in child development where children play together, sharing materials and ideas, but not necessarily working towards a common goal.