Splendor, Inc Required:
Prepare an Activity-Based Budget for the Following:
•
60,000

Splendor, Inc., has done a cost analysis for its production of motorcycle lights.
The following activities and cost drivers have been developed: $$\begin{array} { l l } \text { Activity } & \text { Cost Formula } \\\text { Maintenance } & \$ 5,000 + \$ 8 \text { per machine hour } \\\text { Machining } & \$ 25,000 + \$ 4 \text { per machine hour } \\\text { Inspection } & \$ 90,000 + \$ 1,000 \text { per batch } \\\text { Setups } & \$ 5,000 \text { per batch } \\\text { Purchasing } & \$ 100,000 + \$ 100 \text { per purchase order }\end{array}$$
Required:
Prepare an activity-based budget for the following:
•
60,000 units:
10,000 machine hours; 30 batches; 20,000 purchase orders
•
100,000 units:
18,000 machine hours; 40 batches; 30,000 purchase orders