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

question 39

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 maintenance in an activity-based performance report?

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

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Definitions:

Shared Experiences

Experiences that are collectively lived or encountered by a group, often creating bonds, understanding, or social cohesion among its members.

Skydiving

The sport or activity of jumping from an aircraft and typically free-falling for a period before deploying a parachute to slow the descent to the ground.

Nostalgia Scale

A tool used in psychological and marketing research to measure individuals' tendencies toward or affection for nostalgia.

Quality of Life

An individual's overall assessment of their wellbeing, including not only wealth and employment but also the environment, physical and mental health, education, recreation and leisure time, and social belonging.