Brad Company Planned to Produce 12,000 Units

question 97

Multiple Choice

Brad Company planned to produce 12,000 units.This level of production required 20 setups at a cost of $18,000 plus $500 per setup.Actual production was 10,000 units,requiring 15 setups.Actual setup cost was $26,000.What is the static budget variance for setup costs?

• A) $2,000 Favorable
• B) $2,000 Unfavorable
• C) $2,500 Favorable
• D) $2,500 Unfavorable