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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:  Activity  Cost Formula  Maintenance £15,000+£4 per machine hour  Machining £35,000+£1 per machine hour  Inspection £60,000+£750 per batch  Setups £1,000 per batch  Purchasing £50,000+£10 per purchase order \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?


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