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Mertz,Inc,Has Done a Cost Analysis for Its Production of Flags

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Mertz,Inc.,has done a cost analysis for its production of flags.The following activities and cost drivers have been developed:
 Activity  Cost Farmula  Maintenance $13,000+$2 per machine hour Machining $45,000+$6 per machine hour  Inspection $70,000+$500 per batch  Setups $2,000 per batch  Purchasing $80,000+$150 per purchase order \begin{array} { l l } \text { Activity } & \text { Cost Farmula } \\\hline \text { Maintenance } & \$ 13,000 + \$ 2 \text { per machine hour} \\\text { Machining } & \$ 45,000 + \$ 6 \text { per machine hour } \\\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 flags:
1,000 machine hours; 15 batches; 10 purchase orders
 Maintenance $14,000 Machining 50,000 Inspection 70,000 Setups 32,000 Purchasing 82,000\begin{array}{lr}\text { Maintenance } & \$ 14,000 \\\text { Machining } & 50,000 \\\text { Inspection } & 70,000 \\\text { Setups } & 32,000 \\\text { Purchasing } & 82,000\end{array} Prepare an activity-based performance report.


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