Jerry Company Planned to Produce 12,000 Units

Multiple Choice

Jerry Company planned to produce 12,000 units. This level of activities required 20 set- ups at a cost of $18,000 plus $500 per set- up. Actual sales were 10,000 units, requiring 15 set- ups and 12,000 machine hours. Actual set- up cost was $26,000. is the master budget variance for set- ups.

A) $2,000 favorable
B) $2,000 unfavorable
C) $2,500 favorable
D) $2,500 unfavorable