San Diego State University Operations And Supply Chain Management Assignment Help - Activity-based costing

Question - Activity-based costing, batch-level variance analysis. Jo Nathan Publishing Company specializes in
printing specialty textbooks for a small but profitable college market. Due to the high setup costs for
ea: batch printed, Jo Nathan holds the book requests until demand for a book is approximately 500.
At that pc 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.
Budgeted and actual costs for the printing process for 2009 were:

1. W hat is the static budget number of setups for 2009?
2. W hat is the flexible budget number of setups for 2009?
3. W hat is the actual number of setups in 2009?
4. Assuming fixed setup overhead ...Read More costs are allocated using setup-hours, what is the predetermined
fixed setup overhead allocation rate?
5. Does Jo Nathan’s charge of $700 cover the budgeted variable overhead cost of an order? The
budgeted total overhead cost?
6. For variable setup overhead costs, compute the spending and efficiency variances.
7. For fixed setup overhead costs, compute the spending and the production-volume variances.
8. W hat qualitative factors should Jo Nathan consider before accepting or rejecting a specialorder? ...Read Less

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