Business, 16.08.2021 20:30 hendersontianna05

Lukehart Industries, Inc., produces air purifiers. Lukehart, Inc.,produces the air purfiers in batches. To manufacture a batch of the purifiers, Lukehart, Inc, must set up the machines and assembly line tooling. Setup costs are batch- level costs because they are associated with batches rather than individual units of products. A seperate Setup Department is responsible for setting up machines and tooling for differentmodels of the air purifiers. 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 2015.Budget Amounts Actual AmountsUnits produced and sold 10,000 9,000Batch size (number of unts per batch 400 375Setup- hours per batch 6 5.5Variable overhead cost per setup- hour $50 $52Total Fixed setup overhead costs $18,000 $17,750Calculate the spendng variance for variable overhead setup costsA. $264 unfavorableB. $264 favorableC. $150 favorableD. $150 unfavorable

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Lukehart Industries, Inc., produces air purifiers. Lukehart, Inc.,produces the air purfiers in batch...

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