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

question 154

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
$\begin{array}{lr}\text { Maintenance } & \$ 20,000 \\\text { Machining } & 73,000 \\\text { Inspection } & 73,000 \\\text { Setups } & 18,000 \\\text { Purchasing } & 82,000\end{array}$

-What is the budget variance for maintenance in an activity-based performance report?

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

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Definitions:

Neurotransmitters

Chemicals found in the brain that transmit signals across a synapse from one neuron to another.

Brain Plasticity

The brain's ability to change and adapt as a result of experience by forming new neural connections.

Myelination

The process of forming a myelin sheath around a nerve to allow electrical signals to transmit quickly and efficiently across the nerve cells.

Fine Motor Skills

The coordination of small muscles, typically in the hands and fingers, allowing for precise movements such as writing, grasping, and manipulating objects.