Figure 16-3
Harald, SA Following Are the Actual Costs of Producing 85,000 Stickers: 5,000

question 28

Multiple Choice

Figure 16-3
Harald, SA., has done a cost analysis for its production of bumper stickers. The following activities and cost drivers have been developed: $\begin{array}{ll}\text { Activity } & \text { Cost Formula } \\\text { Maintenance } & £ 11,000+£ 0.11 \text { per machine hour } \\\text { Machining } & £ 25,000+£ 0.50 \text { per machine hour } \\\text { Setups } & £ 50 \text { per batch } \\\text { Purchasing } & £ 200+£ 45 \text { per purchase order }\end{array}$ Following are the actual costs of producing 85,000 stickers: 5,000 machine hours; 10 batches; 20 purchase orders $\begin{array}{lr}\text { Maintenance } & £ 11,500 \\\text { Machining } & 28,300 \\\text { Setups } & 550 \\\text { Purchasing } & 1,000\end{array}$
-Refer to Figure 16-3. What is the budget variance for purchasing in an activity-based performance report?

• A)£50 F
• B)£50 U
• C)£100 U
• D)none of the above

---

Definitions:

Bottom of a Row

The last cell or area in a horizontal row within a table or spreadsheet.

Intersection

A point where two lines, paths, or elements meet or cross.

Row and Column

Fundamental structural elements of spreadsheets and tables, where rows run horizontally, and columns run vertically.

Cell

In spreadsheet software, a cell is the intersection point of a column and row, used to enter and store data.