Figure 16-2
Glenn, SA Following Are the Actual Costs of Producing 75,000 T-Shirts: 5,000

question 46

Multiple Choice

Figure 16-2
Glenn, SA., has done a cost analysis for its production of T-shirts. The following activities and cost drivers have been developed: $\begin{array}{ll}\text { Activity } & \text { Cost Formula } \\\text { Maintenance } & £ 11,000+£ 2 \text { per machine hour } \\\text { Machining } & £ 55,000+£ 3 \text { per machine hour } \\\text { Inspection } & £ 70,000+£ 500 \text { per batch } \\\text { Setups } & £ 2,000 \text { per batch } \\\text { Purchasing } & £ 80,000+£ 150 \text { per purchase order }\end{array}$ Following are the actual costs of producing 75,000 T-shirts: 5,000 machine hours; 10 batches; 20 purchase orders $\begin{array}{lr}\text { Maintenance } & £ 20,000 \\\text { Machining } & 73,000 \\\text { Inspection } & 73,000 \\\text { Setups } & 18,000 \\\text { Purchasing } & 82,000\end{array}$
-Refer to Figure 16-2. What is the budget variance for setups in an activity-based performance report?

• A)£1,000 F
• B)£2,000 F
• C)£3,000 F
• D)none of the above

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Definitions:

Depersonalization Disorder

A mental disorder characterized by persistent or recurrent feelings of detachment or estrangement from one's self or body, impacting one's sense of reality.

Anxiolytic Medication

Drugs designed to inhibit anxiety without necessarily affecting mood or arousal; commonly used to treat anxiety disorders.

Meditation

A practice of focused concentration, often for relaxation, stress reduction, and self-improvement.

Somatic Symptom Disorder

A mental health condition characterized by an individual experiencing significant physical symptoms that may not have a diagnosable medical explanation, causing major distress and problems functioning.