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:

Client

A person or organization receiving services from a professional or company under agreed terms.

Autobiographies

Written accounts of one's own life, often used in psychological studies to understand personality development and life experiences.

Historical Information

Recorded or gathered data about past events and conditions relevant to a particular subject or field.

Client's Memory

Refers to the recall and retention abilities of a client, often assessed in therapeutic or clinical settings.