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

question 9

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 fixed spending variance is

• A)£1,500 U.
• B)£1,500 F.
• C)£2,100 U.
• D)£2,100 F.

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Definitions:

Unions

Are organizations of workers that seek to defend and promote their members’ interests.

Communism

A political and economic ideology advocating for a classless society in which all property is publicly owned and each person works and is paid according to their abilities and needs.

Classless Society

An ideal society in which there is no division or class stratification among its members, implying equality in terms of status, wealth, and power.

Labour Force

The total number of people currently employed or in search of employment within a particular country or economic region.