Reference no: EM132595518

In activity based costing, batch level variance analysis, how can i calculate the rate instead of the given examples in the uploaded home works, which are all compute the price and compute the spending. This is the example of the problem. Jo Nathan Publishing Company specializes in printing specialty textbooks for small but profitable college market. Due to the high setup costs for each batch printed, Jo Nathan holds the book requests until demand for a book is approximately 500. At that point, Jo Nathan will schedule the setup and production of the book. For rush orders, Jo Nathan will produce smaller batches for an additional charge of $700 per setup.

                                                Static Budget Amount                      Actual Results

Number of books produced                     200,000                               216,000

Average number of books per set-up           500                                        480

Hours to set up printers                             6 hours                                6.5 hours

Direct variable cost per set-up hour                  $100                                    $90

Total fixed set-up overhead costs                     $72,000                             $79,000

Question 1: For variable setup overhead costs, calculate the rate and efficiency variances.

Question 2: For fixed setup overhead costs, calculate the rate and the production volume variances.