Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. apex inc. produces a special line of ski bindings

Apex Inc. produces a special line of ski bindings in batches. To manufacture a batch...

90.2K

Verified Solution

Question

Accounting

Apex Inc. produces a special line of ski bindings in batches. To manufacture a batch of bindings Apex Inc. must setup the machines. 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 for different type of bindings.

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 2020:

Actual Amounts

Static-budget Amounts

Units produced and sold

15,000

11,250

Batch size (number of units per batch)

250

225

Setup hours per batch

5

5.25

Variable overhead cost per setup hour

$40

$38

Total fixed setup overhead costs

$14,400

$14,000

Calculate the rate and efficiency variances for variable setup overhead costs.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Chemistry
1.2K views

1. Briefly describe how a drying agent works. List the names and chemical formulas for five...

Biology
1.2K views

Address the following; in your opinion, what human impact should we be most worried about? Regardless of...

Biology
1.2K views

A cell in a hypertonic solution:loses watergains watergains and loses the same amount of waternone...

Physics
1.2K views

NEET PHYSICS Q 94 The moment of inertia of a thin sheet of Q 94...

Accounting
1.2K views

Bently showed the following adjusted account balances on April 30, 2021: Property, Plant &...

Accounting
1.2K views

Blinko Products is considering elating an airplane for use by its sales staff. I fate...

Accounting
1.2K views

Required information [The following information applies to the questions displayed below.] The following information pertains...

Accounting
1.2K views

Hotels-R-Us owns a machine that it purchased on January 1, 2012 for $600,000. The machine...

Accounting
1.2K views

David Partridge bought a saddle from Linville Western Gear with an 8.5% add-on interest installment...

Accounting
1.2K views

On 1/1, Tuna Company purchases 25% of Stanley, Incorporated on January 1 of the current...

Accounting
1.2K views

Problem 24-05A a-c Hart Labs, Inc. provides mad cow disease testing for both state and...

Finance
1.2K views

Problem 13-09 A bond has the following features: Coupon rate of interest (paid annual):...