Figure 18-3
Pippen Company's Activity-Based Performance Report Revealed That Actual

question 9

Multiple Choice

Figure 18-3
Pippen Company's activity-based performance report revealed that actual inspection costs totaled £100,000 at an actual activity level of 50 inspections. Further analysis of inspection costs revealed the following: $\begin{array}{l}&\text { Actual Cost } & \text { Budgeted Cost } \\\text { Inspection costs: }\\\text { Fixed } & £ 30,000 & £ 28,500 \\\text { Variable } & 20,000 & 17,500\end{array}$ Fixed inspection costs consist of the salaries of two inspectors, who are paid £14,250. Each inspector is capable of efficiently conducting inspections of 30 batches.
Variable inspection costs consist of materials used during the inspections.
-Refer to Figure 18-3. The fixed spending variance is

• A)£1,500 U.
• B)£1,500 F.
• C)£2,100 U.
• D)£2,100 F.

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Definitions:

Stagnation Stage

A phase in Erikson's psychosocial development theory typically experienced in middle adulthood, where individuals may struggle with being productive and contributing to society.

Life-Change Units

A measure used in stress research to assess the amount of change and subsequent stress a person experiences, with different events assigned different scores.

Academic Failures

Refers to the inability to meet preset academic standards or expectations, which can impact a student's self-esteem, motivation, and future educational and career opportunities.

Unwanted Pregnancy

A pregnancy that occurs without the intention or desire of the pregnant individual, which can impact their mental, physical, and social health.