Ultar, Inc., produces a special line of toy racing cars. Ultar produces the cars in...
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Ultar, Inc., produces a special line of toy racing cars. Ultar produces the cars in batches. To manufacture each batch of cars, Ultar must set up the machines and molds. Setup costs are fixed batch-level costs. In the long run, number of setup-hours is the cost driver of set up costs. A separate Setup Department is responsible for setting up machines and molds for each style of car. The following information pertains to 2020: (Click the icon to view the information.) Read the requirements. i X Data Table Requirement a. Calculate the spending variance for fixed setup overhead costs. (Label the variance as favorable (F) or unfavorable (U).) The spending variance for fixed setup overhead costs is Requirement b. Calculate the budgeted fixed setup overhead rate. Actual Amounts Static-budget Amounts The budgeted fixed overhead rate per setup hour is 84,600 90,000 Units produced and sold Batch size (number of units per batch) Setup-hours per batch 940 900 Requirement c. Calculate the production-volume variance for fixed overhead setup costs. (Label the variance as favorable (F) or unfavora 6.3 6 The production-volume variance for fixed overhead setup costs is Total fixed setup overhead costs $ 14,850 $ 14,400 Print Done
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