Answer the Following Questions Using the Information Below

question 33

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 spending variance for variable setup overhead costs.

• A)$1,900 unfavorable
• B)$1,900 favorable
• C)$600 unfavorable
• D)$600 favorable

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Definitions:

Economic Changes

Alterations in the structure or performance of an economy, affecting factors like GDP, employment rates, and the availability of goods and services.

Addictions

Compulsive, repeated involvement with a substance or activity despite harmful consequences.

Family Violence

Acts of violence or abuse among members of a family, including physical, emotional, sexual, or psychological harm, often resulting in long-term psychological and health consequences.

Instrumental Functioning

Instrumental functioning refers to the skills and activities required for daily living, often used to assess individuals’ capacity for self-care and independence.