Figure 18-3
Pippen Company's Activity-Based Performance Report Revealed That Actual

question 6

Multiple Choice

Figure 18-3
Pippen Company's activity-based performance report revealed that actual inspection costs totaled £100,000 at an actual activity level of 50 inspections. Further analysis of inspection costs revealed the following: $\begin{array}{l}&\text { Actual Cost } & \text { Budgeted Cost } \\\text { Inspection costs: }\\\text { Fixed } & £ 30,000 & £ 28,500 \\\text { Variable } & 20,000 & 17,500\end{array}$ Fixed inspection costs consist of the salaries of two inspectors, who are paid £14,250. Each inspector is capable of efficiently conducting inspections of 30 batches.
Variable inspection costs consist of materials used during the inspections.
-Refer to Figure 18-3. The volume variance is

• A)£26,250 U.
• B)£26,250 F.
• C)£28,500 U.
• D)£28,500 F.

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Definitions:

Forwarding Address

An address where mail is sent after the recipient has moved from their previous location, ensuring the mail reaches the correct party.

Voucher Checks

A type of check that includes details of the rationale for the check's issuance and the accounts to be charged.

Business Checks

Checks written from a business account, used to pay for goods, services, or other business-related expenses.

Disbursements

The payment of money from a fund or account, usually referring to the distribution of funds for specific purposes or expenses.