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

question 76

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 inspection cost if there was production of 50,000 reflectors that will require 8,000 machine hours, 25 batches, and 15,000 purchase orders?

• A)£18,750
• B)£60,000
• C)£66,000
• D)£78,750

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Definitions:

Use It or Lose It

A principle suggesting that failing to use certain skills or abilities can lead to their deterioration over time.

Replacement Theory

A hypothesis or theory suggesting that one entity, idea, or system takes the place of another due to various factors such as evolution, innovation, or cultural shifts.

Cue-dependent Forgetting

A theory suggesting that forgetting occurs when the cues present at the time of encoding information are not present at the time of recall.

Autobiographical Memory

A type of memory system consisting of episodes recollected from an individual's life, based on a combination of episodic (personal experiences and specific objects, people, and events experienced at particular time and place) and semantic (general knowledge and facts about the world) memory.