Ben Company planned to produce 12,000 units.This level of activities required 20 set-ups at a cost of $18,000 plus $500 per set-up.Actual sales were 10,000 units, requiring 15 set-ups and 12,000 machine hours.Actual set-up cost was $26,000._____ is the static budget-variance for set-ups.
A)$2,500 favorable
B)$2,500 unfavorable
C)$2,000 favorable
D)$2,000 unfavorable

Question

Quizplus · Accepted Answer

The Answer of Ben Company planned to produce 12,000 units.This level of activities required 20 set-ups at a cost of $18,000 plus $500 per set-up.Actual sales were 10,000 units, requiring 15 set-ups and 12,000 machine hours.Actual set-up cost was $26,000._____ is the static budget-variance for set-ups.
A)$2,500 favorable
B)$2,500 unfavorable
C)$2,000 favorable
D)$2,000 unfavorable

Ben Company Planned to Produce 12,000 Units