Answer the Following Questions Using the Information Below:
Coober Pedy

question 124

Multiple Choice

Answer the following questions using the information below:
Coober Pedy Industries produces air purifiers.Coober Pedy produces the air purifiers in batches.To manufacture a batch of the purifiers,Coober Pedy must set up the machines and assembly line tooling.Set-up costs are batch-level costs because they are associated with batches rather than individual units of products.A separate Set-up Department is responsible for setting up machines and tooling for different models of the air purifiers.
Set-up overhead costs consist of some costs that are variable and some costs that are fixed with respect to the number of set-up-hours.The following information pertains to June 2018:
$$\begin{array} { l r r } & \begin{array} { r } \text { Budget } \\\text { Amounts }\end{array} & \begin{array} { r } \text { Actual } \\\text { Amounts }\end{array} \\\text { Units produced and sold } & 10000 & 9000 \\\text { Batch size (number of units per batch) } & 400 & 375 \\\text { Set-up-hours per batch } & 6 & 5.5 \\\text { Variable overhead cost per set-up-hour } & \$ 50 & \$ 52 \\\text { Total fixed set-up overhead costs } & \$ 18000 & \$ 17750\end{array}$$
-Calculate the spending variance for fixed set-up overhead costs.

• A)$150 unfavourable
• B)$150 favourable
• C)$250 favourable
• D)$250 unfavourable

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Definitions:

Postorder Processing

A type of process often used in algorithms and data structure operations that involves visiting a node after its descendants in a tree.

Left Subtree

In binary tree structures, it refers to the subtree that is rooted at the left child of a parent node.

Right Subtree

The portion of a binary tree that is located to the right of a node.

Shallow Copy

A shallow copy of an object copies the 'outer' structure of the object, but not the inner objects; the copied object still references the same inner objects as the original.