Villafane, Inc., has done a cost analysis for its production of decals.The following activities and cost drivers have been developed: Following are the actual costs of producing 35,000 decals: 1,000 machine hours; 5 batches; 30 purchase orders
The following variances were given in the activity performance report:

- What is the activity variance for purchasing?
A) $500 U
B) $100 U
C) $50 U
D) none of these

Question

Villafane, Inc., has done a cost analysis for its production of decals.The following activities and cost drivers have been developed:  Following are the actual costs of producing 35,000 decals: 1,000 machine hours; 5 batches; 30 purchase orders
 The following variances were given in the activity performance report:

-  What is the activity variance for purchasing?
A) $500 U 
B) $100 U 
C) $50 U 
D) none of these

Quizplus · Accepted Answer

The Answer of Villafane, Inc., has done a cost analysis for its production of decals.The following activities and cost drivers have been developed:  Following are the actual costs of producing 35,000 decals: 1,000 machine hours; 5 batches; 30 purchase orders
 The following variances were given in the activity performance report:

-  What is the activity variance for purchasing?
A) $500 U 
B) $100 U 
C) $50 U 
D) none of these