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

question 48

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 inspection in an activity-based performance report?

• A) £1,000 F
• B) £2,000 F
• C) £3,000 F
• D) none of the above

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Definitions:

Commercial Grill

A type of cooking appliance used in food service establishments, designed for grilling large quantities of food efficiently.

Title

A formal document representing a right to ownership or a legal right to a property or asset.

Athletic Shoes

Footwear designed for sports or other forms of physical exercise, offering varying levels of support, durability, and performance enhancements.

Warehouse Receipt

A document that provides proof of ownership of commodities (e.g., merchandise, grains, or metals) stored in a warehouse.