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

Recognize the preparation and significance of post-closing trial balance.

Understand the calculation and interpretation of financial ratios from adjusted trial balance.

Identify errors in the accounting cycle based on account balances and trial balances.

Understand the concept of the operating cycle and its impact on financial statement presentation.

---

Definitions:

Glycolysis

A ten-step metabolic pathway that converts glucose into pyruvate, releasing energy and pyruvate as end products, occurring in the cytosol of cells.

Cellular Respiration

The metabolic process by which cells break down sugars to generate energy in the form of ATP, using oxygen and releasing carbon dioxide.

Electron Transport Chain

A series of protein complexes and other molecules that transfer electrons from donors to acceptors via redox reactions, coupled with the transfer of protons across a membrane, to generate ATP.

Glycolysis

A metabolic pathway that breaks down glucose to pyruvate, producing ATP and NADH, occurring in the cytoplasm of cells.