Answer the Following Questions Using the Information Below

question 158

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 2015:

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

• A) $600 favorable
• B) $1,300 favorable
• C) $600 unfavorable
• D) $1,300 unfavorable

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Definitions:

Physical Illnesses

Health conditions that affect the body, ranging from acute infections to chronic diseases.

Sympathetic Nervous System

Part of the autonomic nervous system that prepares the body for action and stress by accelerating the heart rate, constricting blood vessels, and raising blood pressure.

Parasympathetic Nervous System

Part of the autonomic nervous system responsible for conserving energy, promoting relaxation, and managing bodily functions when at rest.

Wernicke's Aphasia

A neurological condition characterized by significant language comprehension issues and producing meaningless speech, resulting from damage to Wernicke's area of the brain.