Glenn, Inc Following Are the Actual Costs of Producing 75,000 T-Shirts: 5,000

question 37

Multiple Choice

Glenn, Inc. has done a cost analysis for its production of T-shirts. The following activities and cost drivers have been developed:
$$\begin{array} { l l } \text { Activity } & \text { Cost Farmula } \\\hline \text { Maintenance } & \$ 11,000 + \$ 2 \text { per machine how } \\\text { Machining } & \$ 55,000 + \$ 3 \text { per machine how } \\\text { Inspection } & \$ 70,000 + \$ 500 \text { per batch } \\\text { Setups } & \$ 2,000 \text { per batch } \\\text { Purchasing } & \$ 80,000 + \$ 150 \text { per purchase order }\end{array}$$ Following are the actual costs of producing 75,000 T-shirts: 5,000 machine hours; 10 batches; 20 purchase orders
$\begin{array}{lr}\text { Maintenance } & \$ 20,000 \\\text { Machining } & 73,000 \\\text { Inspection } & 73,000 \\\text { Setups } & 18,000 \\\text { Purchasing } & 82,000\end{array}$

-Refer to the figure.What is the budget variance for machining in an activity-based performance report?

• A)$1,000 U
• B)$2,000 U
• C)$3,000 U
• D)$4,000 U

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Definitions:

Participative Leadership

A leadership style that involves employees in decision-making processes, aiming to increase engagement and collaboration.

Leader

An individual who guides or directs others by establishing a clear vision, sharing that vision with others so that they follow willingly, and providing information, knowledge, and methods to realize that vision.

Employees

Individuals hired by an organization to perform specific duties and tasks in exchange for compensation.

Decision

A conclusion or resolution reached after consideration, involving the selection of a course of action among several alternatives.