Figure 15-1
Rydingsward, Inc -Refer to Figure 15-1

question 49

Multiple Choice

Figure 15-1
Rydingsward, Inc., has done a cost analysis for its production of reflectors. The following activities and cost drivers have been developed: $\begin{array}{ll}\text { Activity } & \text { Cost Formula } \\\text { Maintenance } & £ 15,000+£ 4 \text { per machine hour } \\\text { Machining } & £ 35,000+£ 1 \text { per machine hour } \\\text { Inspection } & £ 60,000+£ 750 \text { per batch } \\\text { Setups } & £ 1,000 \text { per batch } \\\text { Purchasing } & £ 50,000+£ 10 \text { per purchase order }\end{array}$
-Refer to Figure 15-1. What is the budgeted maintenance cost if there was production of 50,000 reflectors that will require 8,000 machine hours, 25 batches, and 15,000 purchase orders?

• A)£15,000
• B)£32,000
• C)£47,000
• D)£79,000

---

Definitions:

Social Value

The importance or benefit that something provides to society, including social cohesion, welfare, and community wellbeing.

Earn Profits

The financial gains received by a business after all expenses have been subtracted from its total income.

Regulatory Requirements

Legal obligations or standards that organizations must comply with, set by governmental or regulatory bodies.

Sustainability

the ability to maintain healthy environmental, social, and economic systems in balance, indefinitely, on a global and local scale.