Answer the Following Question(s)using the Information Below

question 50

Multiple Choice

Answer the following question(s) using the information below.Munoz Inc.produces a special line of plastic toy racing cars in batches.To manufacture a batch of the cars Munoz Inc.must setup 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 2012:

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

• A)$600 unfavourable
• B)$1,300 favourable
• C)$600 favourable
• D)$1,300 unfavourable
• E)$400 unfavourable

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Definitions:

Operating Strategies

Comprehensive plans or actions implemented by a business to reach its objectives and streamline its operational process.

Stock Price

Represents the current market value of a company’s shares, influenced by investor supply and demand.

Hedge Fund

An alternative investment fund that employs various strategies to earn active return, or alpha, for investors.

Arbitrage

The simultaneous purchase and sale of an asset to profit from a difference in the price in two different markets.