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 setups in an activity-based performance report?

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

Question

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 setups in an activity-based performance report?

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

Quizplus · Accepted Answer

The question does not provide any information regarding the budgeted cost for setups. Without this information, we cannot calculate the budget variance for setups. Therefore, the answer is D (none of the above).

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