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:

Ethics

Ethical standards that influence an individual's actions or the management of an activity.

Media Richness

Media richness theory suggests that communication media vary in their ability to convey information effectively, with richer media being more capable of transmitting complex messages.

Facilitate Feedback

The act of making it easier to provide or receive constructive criticism and responses.

Multiple Information Cues

Various signals or pieces of information that can be used to make judgments or decisions.