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

question 37

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 maintenance in an activity-based performance report?

• A)£50 F
• B)£50 U
• C)£550 U
• D)£550 F

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Definitions:

Carbon Dioxide

A colorless, odorless gas produced by burning carbon and organic compounds and by respiration, absorbed by plants in photosynthesis.

Nutrients

Materials that supply the necessary nutrients for the development and sustenance of living organisms.

Pacemaker

An electronic device implanted in the body to regulate the heartbeat by delivering electrical impulses to stimulate the heart when necessary.

Pulse Rate

The number of heartbeats per minute, an indicator of heart rate and overall cardiovascular health.