Glenn, SA, Has Done a Cost Analysis for Its Production of of T-Shirts

question 50

Multiple Choice

Glenn, SA., has done a cost analysis for its production of T-shirts. The following activities and cost drivers have been developed: Following are the actual costs of producing 75,000 T-shirts: 5,000 machine hours; 10 batches; 20 purchase orders
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) none of the above

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