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

question 144

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 maintenance in an activity-based performance report?

• A)$50 F
• B)$50 U
• C)$550 U
• D)$550 F

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Definitions:

Puberty

The developmental stage in which an individual matures sexually and reaches reproductive capability.

Sexual Organs

Body parts involved in the reproductive process, including internal and external structures.

Secondary Aging

The aging process that occurs due to controllable factors such as lifestyle choices, illnesses, and environmental influences, as opposed to primary aging which is inevitable genetic aging.

Cognitive Functioning

Mental processes involved in gaining knowledge and comprehension, including thinking, knowing, remembering, judging, and problem-solving.