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

question 21

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 total costs in an activity-based performance report?

• A)£700 U
• B)£700 F
• C)£800 U
• D)none of the above

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Definitions:

Performance Management

A continuous process by which managers and employees work together to plan, monitor, and review an employee’s work objectives and overall contribution to the organization.

Customer Evaluations

Assessments made by clients or customers regarding a company's products or services, typically based on satisfaction, usability, and overall experience.

Sales Representatives

Sales representatives are professionals who promote and sell products or services for a company, often being the main point of contact between the organization and its customers.

Customer Satisfaction

A measure of how products or services meet or surpass customer expectations, often used as a key performance indicator by businesses.