Garcia Company planned to produce 12,000 units.This level of activity required 40 setups at a cost of $18,000 plus $500 per setup.Actual production was 10,000 units,requiring 15 setups.Actual setup cost was $26,000.What is the static budget amount for total setup costs?
A) $21,000
B) $25,500
C) $26,000
D) $38,000

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The Answer of Garcia Company planned to produce 12,000 units.This level of activity required 40 setups at a cost of $18,000 plus $500 per setup.Actual production was 10,000 units,requiring 15 setups.Actual setup cost was $26,000.What is the static budget amount for total setup costs?
A) $21,000
B) $25,500
C) $26,000
D) $38,000

Garcia Company Planned to Produce 12,000 Units