Figure 16-4
Villafane, SA Following Are the Actual Costs of Producing 35,000 Decals: 1,000

question 22

Multiple Choice

Figure 16-4
Villafane, SA., has done a cost analysis for its production of decals. The following activities and cost drivers have been developed: $\begin{array}{ll}\text { Activity } & \text { Cost Formula } \\\text { Design } & £ 5,000+£ 0.05 \text { per machine hour } \\\text { Machining } & £ 25,000+£ 0.01 \text { per machine hour } \\\text { Setups } & £ 35 \text { per batch } \\\text { Purchasing } & £ 50+£ 15 \text { per purchase order }\end{array}$ Following are the actual costs of producing 35,000 decals: 1,000 machine hours; 5 batches; 30 purchase orders $\begin{array}{lr}\text { Design } & £ 5,080 \\\text { Machining } & ? \\\text { Setups } & ? \\\text { Purchasing } & £ 600\end{array}$ The following variances were given in the activity performance report: $\begin{array}{lr}\text { Design } & ? \\\text { Machining } & £ 40 \mathrm{~F} \\\text { Setups } & £ 15 \mathrm{~F} \\\text { Purchasing } & ?\end{array}$
-Refer to Figure 16-4. What is the activity variance for purchasing?

• A)£500 U
• B)£100 U
• C)£50 U
• D)none of the above

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Definitions:

Complex Adaptive Systems

Systems made up of individual parts that have the capacity to adapt and learn from experience, often used to describe ecosystems, economies, and organizations.

Charisma

An individual trait that bestows upon a person the power to impact or command a vast audience.

Neutralizers

Factors that can mitigate or nullify the effect of leadership on follower outcomes, making leadership actions ineffective.

Traits

Characteristic features or qualities that distinguish individuals.