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

question 17

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

• A)£1,000
• B)£25,000
• C)£8,000,000
• D)£15,000,000

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Definitions:

Claustrophobia

An abnormal fear of being in enclosed or confined places.

Enclosed Places

Areas or environments that are surrounded by barriers such as walls or structures, limiting access and egress.

Enema

A procedure where liquid or gas is injected into the rectum, usually to expel its contents, but also to introduce drugs or permit X-ray imaging.

Colon

The large intestine.