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

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Definitions:

Doctrine

A principle or body of principles presented for acceptance or belief, as by a religious, philosophical, scientific, or political group; policy.

Third-Party Estoppel

A legal principle that prevents a party from asserting or denying a fact due to another's act, when the third party has relied upon that act or representation.

Implied Authority

The power assumed by an individual as part of their role or position, enabling them to perform tasks or make decisions inherent to their duties.

Express Authority

The power granted to an agent explicitly by the principal, typically through direct, clear instructions.