Harald, Inc., has done a cost analysis for its production of bumper stickers. The following activities and cost drivers have been developed:
$$\begin{array} { l l }
\text { Activit } & \text { Cost Formula } \
\hline \text { Maintenance } & \$ 11,000 + \$ 0.11 \text { per machine hour } \
\text { Machining } & \$ 25,000 + \$ 0.50 \text { per machine hour } \
\text { Setups } & \$ 50 \text { per batch } \
\text { Purchasing } & \$ 200 + \$ 45 \text { per purchase order }
\end{array}$$
-Refer to the figure.What is the budget variance for maintenance in an activity-based performance report?
A)$50 F
B)$50 U
C)$550 F
D)$550 U

Question

Harald, Inc., has done a cost analysis for its production of bumper stickers. The following activities and cost drivers have been developed:
$$\begin{array} { l l } 
\text { Activit } & \text { Cost Formula } \
\hline \text { Maintenance } & \$ 11,000 + \$ 0.11 \text { per machine hour } \
\text { Machining } & \$ 25,000 + \$ 0.50 \text { per machine hour } \
\text { Setups } & \$ 50 \text { per batch } \
\text { Purchasing } & \$ 200 + \$ 45 \text { per purchase order }
\end{array}$$
-Refer to the figure.What is the budget variance for maintenance in an activity-based performance report?
A)$50 F
B)$50 U
C)$550 F
D)$550 U

Quizplus · Accepted Answer

The Answer of Harald, Inc., has done a cost analysis for its production of bumper stickers. The following activities and cost drivers have been developed:
$$\begin{array} { l l } 
\text { Activit } & \text { Cost Formula } \
\hline \text { Maintenance } & \$ 11,000 + \$ 0.11 \text { per machine hour } \
\text { Machining } & \$ 25,000 + \$ 0.50 \text { per machine hour } \
\text { Setups } & \$ 50 \text { per batch } \
\text { Purchasing } & \$ 200 + \$ 45 \text { per purchase order }
\end{array}$$
-Refer to the figure.What is the budget variance for maintenance in an activity-based performance report?
A)$50 F
B)$50 U
C)$550 F
D)$550 U

Harald, Inc -Refer to the Figure