Figure 15-2
Harald, Inc Following Are the Actual Costs of Producing 85,000 Stickers: 5,000

question 34

Multiple Choice

Figure 15-2
Harald, Inc., 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 15-2. What is the actual cost per sticker? (Round to three decimal places.)

• A)£0.468
• B)£0.478
• C)£0.486
• D)£0.487

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Definitions:

Stagflation

An economic situation characterized by stagnant economic growth, high unemployment, and high inflation.

Human Rights

Basic rights and freedoms that belong to every person in the world, from birth until death, irrespective of any distinction.

Jimmy Carter

The 39th president of the United States (1977-1981) known for his efforts in promoting peace and human rights globally, as well as his post-presidency humanitarian work.

Affirmative Action

Policies or measures that are intended to promote access to education or employment for historically marginalized groups by taking into consideration ethnicity, color, or other factors of disadvantage.