Winton Corporation Produces a Special Line of Basketball Hoops Required:
A

Winton Corporation produces a special line of basketball hoops.Winton Corporation produces the hoops in batches.To manufacture a batch of the basketball hoops,Winton Corporation must set up the machines and moulds.Set-up costs are batch-level costs because they are associated with batches rather than individual units of products.A separate Set-up Department is responsible for setting up machines and moulds for different styles of basketball hoops.
Set-up overhead costs consist of some costs that are variable and some costs that are fixed with respect to the number of set-up-hours.The following information pertains to January 2018.
$\begin{array}{lrr}&\text { Static-budget } & \text { Actual } \\&\text { Amounts } & \text { Amounts }\\\text { Basketball hoops produced and sold } & 40000 & 38000 \\\text { Batch size (number of units per batch) } & 200 & 250 \\\text { Set-up-hours per batch } & 5 & 4 \\\text { Variable overhead cost per set-up-hour } & \$ 10 & \$ 9 \\\text { Total fixed set-up overhead costs } & \$ 22500 & \$ 21000\end{array}$

Required:
a.Calculate the efficiency variance for variable set-up overhead costs.
b.Calculate the spending variance for variable set-up overhead costs.
c.Calculate the flexible-budget variance for variable set-up overhead costs.
d.Calculate the spending variance for fixed set-up overhead costs.
e.Calculate the production-volume variance for fixed set-up overhead costs.
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