Riemay,Inc Following Are the Actual Costs of Producing 35,000 Cards:
60

question 153

Essay

Riemay,Inc.,has done a cost analysis for its production of sports cards.The following activities and cost drivers have been developed:
$$\begin{array} { l l } \text { Activity } & \text { Cost Formula } \\\hline \text { Photgerapy } & \$ 50 + \$ 35 \text { per labour hour } \\\text { Printing } & \$ 25,000 + \$ 0.01 \text { per machine hour } \\\text { Setups } & \$ 25 \text { per batch } \\\text { Purchasing } & \$ 25 + \$ 25 \text { per purchase order }\end{array}$$ Following are the actual costs of producing 35,000 cards:
60 labour hours; 500 machine hours; 5 batches; 30 purchase orders
$$\begin{array} { l r } \text { Photapraphy } & ? \\\text { Printing } & \$ 25,000 \\\text { Setups } & ? \\\text { Purchasing } & \$ 700\end{array}$$ The following variances were given in the activity performance report:
$$\begin{array} { l r } \text { Photapraphy } & \$10 F \\\text { Printing } &? \\\text { Setups } & \$20 U \\\text { Purchasing } & ?\end{array}$$
i.Find the missing values.
ii.Prepare an activity-based performance report in good form.

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Definitions:

Amortization Of Tangible Capital Assets

The systematic reduction in the value of physical assets of a company over their useful lives for accounting and tax purposes.

Statement Of Changes

A detailed financial statement showing the changes in equity of a company over a certain period of time, including transactions with shareholders and the result of profits or losses.

Net Debt

A metric that subtracts total liabilities from cash and cash equivalents, measuring a company's ability to pay off its debts with its liquid assets.

Public Sector Accounting Board

A regulatory body responsible for setting and issuing accounting standards and guidance for the public sector.