Figure 15-2
Harald, Inc Following Are the Actual Costs of Producing 85,000 Stickers: 5,000

question 5

Multiple Choice

Figure 15-2
Harald, Inc., 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 15-2. What is the budgeted cost per sticker? (Round to three decimal places.)

• A)£0.468
• B)£0.478
• C)£0.486
• D)£0.487

---

Definitions:

Cork Cells

Waterproof cells forming the outer protective layer of the bark in trees and other plants, composed of dead cells at maturity.

Vascular Bundle

A strand of tissue in plants that contains both xylem and phloem, responsible for the transport of water, minerals, and nutrients.

Cork Cambium

A layer of tissue in plants that produces cork, a protective barrier for the surface of stems and roots.

Ground Tissue

The bulk of most plant tissues, filling the space between the epidermis and vascular tissue systems, involved in photosynthesis, storage, and support.