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Mattison Company Has Developed Cost Formulas for the Drivers of the Following

question 34

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Mattison Company has developed cost formulas for the drivers of the following production activities:  Driver  Activity  Fixed  Variable  Labor hours  Materials $0$20 Labor hours  Labor 010 Machine hours  Maintenance 10,0008 Machine hours  Machining 50,0002 Number of setups  Inspections 30,000200 Number of setups  Setups 0300 Number of purchase orders  Purchasing 75,0003\begin{array} { l l r } { \text { Driver } } & \text { Activity } & \text { Fixed }& \text { Variable } \\\hline \text { Labor hours } & \text { Materials } & \$ 0&\$20\\\text { Labor hours } & \text { Labor } & 0 &10\\\text { Machine hours } & \text { Maintenance } & 10,000&8 \\\text { Machine hours } & \text { Machining } & 50,000&2 \\\text { Number of setups } & \text { Inspections } & 30,000&200 \\\text { Number of setups } & \text { Setups } & 0 &300\\\text { Number of purchase orders } & \text { Purchasing } & 75,000&3\end{array} If the actual activity was 20 setups and the actual fixed cost for inspections was $28,000 and the variable cost for inspections was $5,000, the total variance for inspections is due to

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