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Figure 16-4
Villafane, SA Following Are the Actual Costs of Producing 35,000 Decals: 1,000

question 34

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Figure 16-4
Villafane, SA., has done a cost analysis for its production of decals. The following activities and cost drivers have been developed:  Activity  Cost Formula  Design £5,000+£0.05 per machine hour  Machining £25,000+£0.01 per machine hour  Setups £35 per batch  Purchasing £50+£15 per purchase order \begin{array}{ll}\text { Activity } & \text { Cost Formula } \\\text { Design } & £ 5,000+£ 0.05 \text { per machine hour } \\\text { Machining } & £ 25,000+£ 0.01 \text { per machine hour } \\\text { Setups } & £ 35 \text { per batch } \\\text { Purchasing } & £ 50+£ 15 \text { per purchase order }\end{array} Following are the actual costs of producing 35,000 decals: 1,000 machine hours; 5 batches; 30 purchase orders  Design £5,080 Machining ? Setups ? Purchasing £600\begin{array}{lr}\text { Design } & £ 5,080 \\\text { Machining } & ? \\\text { Setups } & ? \\\text { Purchasing } & £ 600\end{array} The following variances were given in the activity performance report:  Design ? Machining £40 F Setups £15 F Purchasing ?\begin{array}{lr}\text { Design } & ? \\\text { Machining } & £ 40 \mathrm{~F} \\\text { Setups } & £ 15 \mathrm{~F} \\\text { Purchasing } & ?\end{array}
-Refer to Figure 16-4. What is the actual cost of setups?


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