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

question 58

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 inspection in an activity-based performance report?

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

---

Definitions:

Cultural Syndrome

Patterns of behaviors, beliefs, and values that are characteristic and recognizable within a specific culture or society.

Honor

A principle that involves respect and admiration, often associated with upholding one's moral values and integrity.

Appear Fierce

To display a visually intimidating or aggressive demeanor.

Cross-Cultural Researchers

Scholars who study the differences and similarities among cultures, focusing on various psychological, social, or behavioral aspects.