Figure 16-3
Harald, SA Following Are the Actual Costs of Producing 85,000 Stickers: 5,000

question 11

Multiple Choice

Figure 16-3
Harald, SA., has done a cost analysis for its production of bumper stickers. The following activities and cost drivers have been developed: $\begin{array}{ll}\text { Activity } & \text { Cost Formula } \\\text { Maintenance } & £ 11,000+£ 0.11 \text { per machine hour } \\\text { Machining } & £ 25,000+£ 0.50 \text { per machine hour } \\\text { Setups } & £ 50 \text { per batch } \\\text { Purchasing } & £ 200+£ 45 \text { per purchase order }\end{array}$ Following are the actual costs of producing 85,000 stickers: 5,000 machine hours; 10 batches; 20 purchase orders $\begin{array}{lr}\text { Maintenance } & £ 11,500 \\\text { Machining } & 28,300 \\\text { Setups } & 550 \\\text { Purchasing } & 1,000\end{array}$
-Refer to Figure 16-3. What is the budget variance for setups in an activity-based performance report?

• A)£50 F
• B)£50 U
• C)£800 U
• D)none of the above

---

Definitions:

Steady Progression

The consistent and gradual advancement or development in a particular project, skill, or process over time.

Different Font Sizes

The use of varying sizes of typography in a document or presentation to enhance readability, emphasize importance, or create visual interest.

Action Verbs

Verbs that express specific, dynamic actions, often used in resumes and professional writing to convey effective execution of tasks.

Short, Concrete Nouns

Brief, specific words that name tangible objects, people, or places.