301. Silver Faces, Inc., has done a cost analysis for its production of reflectors. The following activities and cost drivers have been developed:
Activity Cost Formula
Maintenance $15,000 + $4 per machine hour
Machining $35,000 + $1 per machine hour
Inspection $60,000 + $750 per batch
Setups $1,000 per batch
Purchasing $50,000 + $10 per purchase order
What is the total cost for production of 50,000 reflectors that will require 8,000 machine hours, 25 batches, and 15,000 purchase orders?
a. $393,750
b. $933,410
c. $3,937,500
d. $38,410,000
$15,000 + $32,000 + $35,000 + $8,000 + $60,000 + $18,750 + $25,000 + $50,000 + $150,000 = $393,750
302. Silver Faces, Inc., has done a cost analysis for its production of reflectors. The following activities and cost drivers have been developed:
Activity Cost Formula
Maintenance $15,000 + $4 per machine hour
Machining $35,000 + $1 per machine hour
Inspection $60,000 + $750 per batch
Setups $1,000 per batch
Purchasing $50,000 + $10 per purchase order
What is the budget for maintenance if 20,000 reflectors were made that required 3,500 machine hours, 12 batches, and 5,000 purchase orders?
a. $3,500
b. $15,000
c. $29,000
d. $14,000
$15,000 + ($4 × 3,500) = $29,000
303. Bienestar, Inc., has done a cost analysis for its production of vests. The following activities and cost drivers have been developed:
Activity Cost Formula
Maintenance $11,000 + $2 per machine hour
Machining $55,000 + $3 per machine hour
Inspection $70,000 + $500 per batch
Setups $2,000 per batch
Purchasing $80,000 + $150 per purchase order
Following are the actual costs of producing 75,000 vests: 5,000 machine hours; 10 batches; 20 purchase orders
Maintenance $20,000
Machining 73,000
Inspection 73,000
Setups 18,000
Purchasing 82,000
What is the budget variance for maintenance in an activity-based performance report?
a. $1,000 U
b. $3,000 U
c. $3,000 F
d. none of these
Actual $20,000
Budget $11,000 + (5,000 × $2) 21,000
Variance $ 1,000 F
304. Bienestar, Inc., has done a cost analysis for its production of vests. The following activities and cost drivers have been developed:
Activity Cost Formula
Maintenance $11,000 + $2 per machine hour
Machining $55,000 + $3 per machine hour
Inspection $70,000 + $500 per batch
Setups $2,000 per batch
Purchasing $80,000 + $150 per purchase order
Following are the actual costs of producing 75,000 vests: 5,000 machine hours; 10 batches; 20 purchase orders
Maintenance $20,000
Machining 73,000
Inspection 73,000
Setups 18,000
Purchasing 82,000
What is the budget variance for machining in an activity-based performance report?
a. $1,000 U
b. $2,000 U
c. $3,000 U
d. none of these
Actual $73,000
Budget $55,000 + (5,000 × $3) 70,000
Variance $ 3,000 U
305. Bienestar, Inc., has done a cost analysis for its production of vests. The following activities and cost drivers have been developed:
Activity Cost Formula
Maintenance $11,000 + $2 per machine hour
Machining $55,000 + $3 per machine hour
Inspection $70,000 + $500 per batch
Setups $2,000 per batch
Purchasing $80,000 + $150 per purchase order
Following are the actual costs of producing 75,000 vests: 5,000 machine hours; 10 batches; 20 purchase orders
Maintenance $20,000
Machining 73,000
Inspection 73,000
Setups 18,000
Purchasing 82,000
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
Actual $73,000
Budget $70,000 + (10 × $500) 75,000
Variance $ 2,000 F
306. Bienestar, Inc., has done a cost analysis for its production of vests. The following activities and cost drivers have been developed:
Activity Cost Formula
Maintenance $11,000 + $2 per machine hour
Machining $55,000 + $3 per machine hour
Inspection $70,000 + $500 per batch
Setups $2,000 per batch
Purchasing $80,000 + $150 per purchase order
Following are the actual costs of producing 75,000 vests: 5,000 machine hours; 10 batches; 20 purchase orders
Maintenance $20,000
Machining 73,000
Inspection 73,000
Setups 18,000
Purchasing 82,000
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 these
Actual $18,000
Budget ($2,000 × 10) 20,000
Variance $ 2,000 F
307. Bienestar, Inc., has done a cost analysis for its production of vests. The following activities and cost drivers have been developed:
Activity Cost Formula
Maintenance $11,000 + $2 per machine hour
Machining $55,000 + $3 per machine hour
Inspection $70,000 + $500 per batch
Setups $2,000 per batch
Purchasing $80,000 + $150 per purchase order
Following are the actual costs of producing 75,000 vests: 5,000 machine hours; 10 batches; 20 purchase orders
Maintenance $20,000
Machining 73,000
Inspection 73,000
Setups 18,000
Purchasing 82,000
What is the budget variance for purchasing in an activity-based performance report?
a. $1,000 U
b. $2,000 U
c. $3,000 U
d. none of these
Actual $82,000
Budget $80,000 + (20 × $150) 83,000
Variance $ 1,000 F
308. Bienestar, Inc., has done a cost analysis for its production of vests. The following activities and cost drivers have been developed:
Activity Cost Formula
Maintenance $11,000 + $2 per machine hour
Machining $55,000 + $3 per machine hour
Inspection $70,000 + $500 per batch
Setups $2,000 per batch
Purchasing $80,000 + $150 per purchase order
Following are the actual costs of producing 75,000 vests: 5,000 machine hours; 10 batches; 20 purchase orders
Maintenance $20,000
Machining 73,000
Inspection 73,000
Setups 18,000
Purchasing 82,000
What is the budget variance for total costs in an activity-based performance report?
a. $1,000 F
b. $2,000 F
c. $3,000 F
d. none of these
Actual $266,000
Budget $21,000 + $70,000 + $75,000 + $20,000 + $83,000 269,000
Variance $ 3,000 F
309. Villanova, Inc., has done a cost analysis for its production of rubber stamps. The following activities and cost drivers have been developed:
Activity Cost Formula
Design $5,000 + $0.05 per machine hour
Machining $25,000 + $0.01 per machine hour
Setups $35 per batch
Purchasing $50 + $15 per purchase order
Following are the actual costs of producing 35,000 rubber stamps: 1,000 machine hours; 5 batches; 30 purchase orders
Design $5,080
Machining ?
Setups ?
Purchasing $600
The following variances were given in the activity performance report:
Design ?
Machining $40 F
Setups 15 F
Purchasing ?
What is the actual cost of machining?
a. $24,970
b. $25,010
c. $25,050
d. none of these
Variance $ 40 F
Budget $25,000 + (1,000 × $0.01) 25,010
Actual $24,970
310. Villanova, Inc., has done a cost analysis for its production of rubber stamps. The following activities and cost drivers have been developed:
Activity Cost Formula
Design $5,000 + $0.05 per machine hour
Machining $25,000 + $0.01 per machine hour
Setups $35 per batch
Purchasing $50 + $15 per purchase order
Following are the actual costs of producing 35,000 rubber stamps: 1,000 machine hours; 5 batches; 30 purchase orders
Design $5,080
Machining ?
Setups ?
Purchasing $600
The following variances were given in the activity performance report:
Design ?
Machining $40 F
Setups $15 F
Purchasing ?
What is the actual cost of setups?
a. $160
b. $190
c. $300
d. none of these
Variance $ 15 F
Budget $35 × 5 175
Actual $160
Activity Cost Formula
Maintenance $15,000 + $4 per machine hour
Machining $35,000 + $1 per machine hour
Inspection $60,000 + $750 per batch
Setups $1,000 per batch
Purchasing $50,000 + $10 per purchase order
What is the total cost for production of 50,000 reflectors that will require 8,000 machine hours, 25 batches, and 15,000 purchase orders?
a. $393,750
b. $933,410
c. $3,937,500
d. $38,410,000
$15,000 + $32,000 + $35,000 + $8,000 + $60,000 + $18,750 + $25,000 + $50,000 + $150,000 = $393,750
302. Silver Faces, Inc., has done a cost analysis for its production of reflectors. The following activities and cost drivers have been developed:
Activity Cost Formula
Maintenance $15,000 + $4 per machine hour
Machining $35,000 + $1 per machine hour
Inspection $60,000 + $750 per batch
Setups $1,000 per batch
Purchasing $50,000 + $10 per purchase order
What is the budget for maintenance if 20,000 reflectors were made that required 3,500 machine hours, 12 batches, and 5,000 purchase orders?
a. $3,500
b. $15,000
c. $29,000
d. $14,000
$15,000 + ($4 × 3,500) = $29,000
303. Bienestar, Inc., has done a cost analysis for its production of vests. The following activities and cost drivers have been developed:
Activity Cost Formula
Maintenance $11,000 + $2 per machine hour
Machining $55,000 + $3 per machine hour
Inspection $70,000 + $500 per batch
Setups $2,000 per batch
Purchasing $80,000 + $150 per purchase order
Following are the actual costs of producing 75,000 vests: 5,000 machine hours; 10 batches; 20 purchase orders
Maintenance $20,000
Machining 73,000
Inspection 73,000
Setups 18,000
Purchasing 82,000
What is the budget variance for maintenance in an activity-based performance report?
a. $1,000 U
b. $3,000 U
c. $3,000 F
d. none of these
Actual $20,000
Budget $11,000 + (5,000 × $2) 21,000
Variance $ 1,000 F
304. Bienestar, Inc., has done a cost analysis for its production of vests. The following activities and cost drivers have been developed:
Activity Cost Formula
Maintenance $11,000 + $2 per machine hour
Machining $55,000 + $3 per machine hour
Inspection $70,000 + $500 per batch
Setups $2,000 per batch
Purchasing $80,000 + $150 per purchase order
Following are the actual costs of producing 75,000 vests: 5,000 machine hours; 10 batches; 20 purchase orders
Maintenance $20,000
Machining 73,000
Inspection 73,000
Setups 18,000
Purchasing 82,000
What is the budget variance for machining in an activity-based performance report?
a. $1,000 U
b. $2,000 U
c. $3,000 U
d. none of these
Actual $73,000
Budget $55,000 + (5,000 × $3) 70,000
Variance $ 3,000 U
305. Bienestar, Inc., has done a cost analysis for its production of vests. The following activities and cost drivers have been developed:
Activity Cost Formula
Maintenance $11,000 + $2 per machine hour
Machining $55,000 + $3 per machine hour
Inspection $70,000 + $500 per batch
Setups $2,000 per batch
Purchasing $80,000 + $150 per purchase order
Following are the actual costs of producing 75,000 vests: 5,000 machine hours; 10 batches; 20 purchase orders
Maintenance $20,000
Machining 73,000
Inspection 73,000
Setups 18,000
Purchasing 82,000
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
Actual $73,000
Budget $70,000 + (10 × $500) 75,000
Variance $ 2,000 F
306. Bienestar, Inc., has done a cost analysis for its production of vests. The following activities and cost drivers have been developed:
Activity Cost Formula
Maintenance $11,000 + $2 per machine hour
Machining $55,000 + $3 per machine hour
Inspection $70,000 + $500 per batch
Setups $2,000 per batch
Purchasing $80,000 + $150 per purchase order
Following are the actual costs of producing 75,000 vests: 5,000 machine hours; 10 batches; 20 purchase orders
Maintenance $20,000
Machining 73,000
Inspection 73,000
Setups 18,000
Purchasing 82,000
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 these
Actual $18,000
Budget ($2,000 × 10) 20,000
Variance $ 2,000 F
307. Bienestar, Inc., has done a cost analysis for its production of vests. The following activities and cost drivers have been developed:
Activity Cost Formula
Maintenance $11,000 + $2 per machine hour
Machining $55,000 + $3 per machine hour
Inspection $70,000 + $500 per batch
Setups $2,000 per batch
Purchasing $80,000 + $150 per purchase order
Following are the actual costs of producing 75,000 vests: 5,000 machine hours; 10 batches; 20 purchase orders
Maintenance $20,000
Machining 73,000
Inspection 73,000
Setups 18,000
Purchasing 82,000
What is the budget variance for purchasing in an activity-based performance report?
a. $1,000 U
b. $2,000 U
c. $3,000 U
d. none of these
Actual $82,000
Budget $80,000 + (20 × $150) 83,000
Variance $ 1,000 F
308. Bienestar, Inc., has done a cost analysis for its production of vests. The following activities and cost drivers have been developed:
Activity Cost Formula
Maintenance $11,000 + $2 per machine hour
Machining $55,000 + $3 per machine hour
Inspection $70,000 + $500 per batch
Setups $2,000 per batch
Purchasing $80,000 + $150 per purchase order
Following are the actual costs of producing 75,000 vests: 5,000 machine hours; 10 batches; 20 purchase orders
Maintenance $20,000
Machining 73,000
Inspection 73,000
Setups 18,000
Purchasing 82,000
What is the budget variance for total costs in an activity-based performance report?
a. $1,000 F
b. $2,000 F
c. $3,000 F
d. none of these
Actual $266,000
Budget $21,000 + $70,000 + $75,000 + $20,000 + $83,000 269,000
Variance $ 3,000 F
309. Villanova, Inc., has done a cost analysis for its production of rubber stamps. The following activities and cost drivers have been developed:
Activity Cost Formula
Design $5,000 + $0.05 per machine hour
Machining $25,000 + $0.01 per machine hour
Setups $35 per batch
Purchasing $50 + $15 per purchase order
Following are the actual costs of producing 35,000 rubber stamps: 1,000 machine hours; 5 batches; 30 purchase orders
Design $5,080
Machining ?
Setups ?
Purchasing $600
The following variances were given in the activity performance report:
Design ?
Machining $40 F
Setups 15 F
Purchasing ?
What is the actual cost of machining?
a. $24,970
b. $25,010
c. $25,050
d. none of these
Variance $ 40 F
Budget $25,000 + (1,000 × $0.01) 25,010
Actual $24,970
310. Villanova, Inc., has done a cost analysis for its production of rubber stamps. The following activities and cost drivers have been developed:
Activity Cost Formula
Design $5,000 + $0.05 per machine hour
Machining $25,000 + $0.01 per machine hour
Setups $35 per batch
Purchasing $50 + $15 per purchase order
Following are the actual costs of producing 35,000 rubber stamps: 1,000 machine hours; 5 batches; 30 purchase orders
Design $5,080
Machining ?
Setups ?
Purchasing $600
The following variances were given in the activity performance report:
Design ?
Machining $40 F
Setups $15 F
Purchasing ?
What is the actual cost of setups?
a. $160
b. $190
c. $300
d. none of these
Variance $ 15 F
Budget $35 × 5 175
Actual $160
