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a) Classy Attire the designer and maker of elaborate prom dresses. The president of Classy wants to switch to an activity-based approach in the upcoming year to assign prices to the gowns. Production line setups are a major activity at Classy. Next year Classy expects to perform 1,500 setups at a total cost of $93,000. Classy plans to produce 310 dresses of the A128 design, which will require three setups.
Required:
1. How much setup cost will be allocated to each dress of the A128 design that is produced?
Calculate labor rate and efficiency variances and the controllable overhead variance and the overhead volume variance.
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