Figure 21-4
Rollo Company Has Developed Cost Formulas for the Drivers

question 5

Multiple Choice

Figure 21-4
Rollo Company has developed cost formulas for the drivers of the following production activities: $\begin{array}{llcc}\text { Driver } & \text { Activity } & \text { Fixed } & \text { Variable } \\\text { Labour hours } & \text { Materials } & -0- & 20 \\\text { Labour hours } & \text { Labour } & -0- & 10\\\text { Machine hours } & \text { Maintenance } & 10,000 & 8 \\\text { Machine hours } & \text { Machining } & 50,000 & 2 \\\text { Number of setups } & \text { Inspections } & 30,000 & 200 \\\text { Number of setups } & \text { Setups } & -0- & 300 \\\text { Number of purchase orders } & \text { Purchasing } & 75,000 & 3\end{array}$
-Refer to Figure 21-4. The budgeted inspection cost for 20 setups is

• A)£175,860.
• B)£40,000.
• C)£34,000.
• D)£30,000.

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Definitions:

Innate Action Pattern

A pre-programmed response that is triggered by specific environmental stimuli, characteristic of a particular species.

Eyebrow Flick

An often subconscious facial gesture involving a quick raise and lower of the eyebrow, sometimes indicating interest or recognition.

Eibl-Eibesfeldt

Refers to Irenäus Eibl-Eibesfeldt, an ethologist known for his work in human behavior and evolutionary biology.

Aggressive Encounter

An interaction characterized by behaviors intended to harm or intimidate another individual, often driven by anger or hostility.