Ans 1
Standard Headcount = 14 employees
Standard setup hours per employee = 2210 hours
Standard setup Hours - 30940 hours
Standard Cost - $ 680,680
Standard cost per hour - (680680 /30940) = 22
Actual Setup hours - 29090 hours
Volume Variance = (standard Volume - Actual Volume) x Standard rate
= (30940 - 29090) x 22
= 1850 x 22
= 40700
Volume variance = $ 40,700
Unused Capacity Variance = (Standard Capacity - Actual Capacity)
= 30940 - 29090
= 1850 hours
Ans 2
Maquina Company
Value and Non - value added Report
Particulars Value Added Non- Value Added Actual Cost
Set-up 639980 40700 680680
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