Answer the Following Questions Using the Information Below

question 20

Multiple Choice

Answer the following questions using the information below:
Lukehart Industries, Inc., produces air purifiers. Lukehart, Inc., produces the air purifiers in batches. To manufacture a batch of the purifiers, Lukehart, Inc., must set up 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 2011:

-Calculate the flexible-budget variance for variable setup overhead costs.

• A)$114 favorable
• B)$264 favorable
• C)$264 unfavorable
• D)$114 unfavorable

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Definitions:

Cones

Photoreceptor cells in the retina of the eye responsible for color vision and functioning best in relatively bright light.

Color Vision

The ability of the visual system to distinguish objects based on the wavelengths (or frequencies) of the light they reflect, emit, or transmit.

Brightness Dimension

An aspect of visual perception in which a stimulus appears to emit or reflect more or less light.

Color Solid

A three-dimensional model representing the relationships between different colors, typically showing hue, value (lightness), and saturation (chroma) as the dimensions.