izes in printing specialty textbooks for a small but profitable college market. Due to the high setup costs for 8-37 Activity-based costing, batch-level variance analysis. Jo Nathan Publishing Company special each batch printed, Jo Nathan holds the book requests until demand for a book is approximately 500. Atta point 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 2018 were Actual Results 216,000 Static-Budget Amounts 200,000 500 6 hours $ 100 $72,000 Number of books produced Average number of books per setup Hours to set up printers Variable overhead cost per setup-hour Total fixed setup overhead costs 480 6.5 hours $ 90 $79,000 Required 1. What is the static-budget number of setups for 2018? 2. What is the flexible-budget number of setups for 2018? 3. What is the actual number of setups in 2018? 4. Assuming fixed setup overhead 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 bud- geted total overhead cost? 6. For variable setup overhead costs, calculate the rate and efficiency variances. 7. For fixed setup overhead costs, calculate the rate and the production-volume variances. 8. What qualitative factors should Jo Nathan consider before accepting or rejecting a special order