Glenn, Inc., 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 these

Question

Glenn, Inc., 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 these

Quizplus · Accepted Answer

Since no information is given about the budgeted or standard costs associated with inspection, it is impossible to calculate a budget variance. Therefore, the correct answer is D, none of these.