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

question 22

Multiple Choice

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

• A)£500 U
• B)£100 U
• C)£50 U
• D)none of the above

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Definitions:

Files

Digital documents or records stored in a computer system or other storage devices.

Scanned

Describes the process of sequentially examining or reading information from a source, often used in the context of barcodes or digital images.

Data

Information that is processed or stored by a computer.

Manufacturer

A company or entity that produces finished goods from raw materials through the use of equipment and processes.