Walterboro, Inc Following Are the Actual Costs of Producing 85,000 Decal S

question 192

Multiple Choice

Walterboro, Inc., has done a cost analysis for its production of decals. The following activities and cost drivers have been developed: $\begin{array}{ll}\text { Activity } & \text { Cost Formula } \\\text { Maintenance } & \$ 11,000+\$ 0.11 \text { per machine hour } \\\text { Machining } & \$ 25,000+\$ 0.50 \text { per machine hour } \\\text { Setups } & \$ 50 \text { per batch } \\\text { Purchasing } & \$ 200+\$ 45 \text { per purchase order }\end{array}$
Following are the actual costs of producing 85,000 decal s: 5,000 machine hours; 10 batches; 20 purchase orders

$\begin{array}{lr}\text { Maintenance } & \$ 11,500 \\\text { Machining } & 28,300 \\\text { Setups } & 550 \\\text { Purchasing } & 1,000\end{array}$ What is the budget variance for setups in an activity-based performance report?

• A)$50 F
• B)$50 U
• C)$800 U
• D)none of these