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Question - Munoz Inc. produces a special line of plastic toy race cars in batches. To manufacture a batch of the? cars, Munoz Inc. must set up the machines and molds. 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 and molds for different styles of car. 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 2022.
?
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
Required - Calculate the production?-volume variance for fixed setup overhead costs. Round to the nearest cent.
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