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Figure 15-2
Harald, Inc Following Are the Actual Costs of Producing 85,000 Stickers: 5,000

Question 1

Multiple Choice

Figure 15-2
Harald, Inc., has done a cost analysis for its production of bumper stickers. The following activities and cost drivers have been developed:  Activity  Cost Formula  Maintenance £11,000+£0.11 per machine hour  Machining £25,000+£0.50 per machine hour  Setups £50 per batch  Purchasing £200+£45 per purchase order \begin{array}{ll}\text { Activity } & \text { Cost Formula } \\\text { Maintenance } & £ 11,000+£ 0.11 \text { per machine hour } \\\text { Machining } & £ 25,000+£ 0.50 \text { per machine hour } \\\text { Setups } & £ 50 \text { per batch } \\\text { Purchasing } & £ 200+£ 45 \text { per purchase order }\end{array} Following are the actual costs of producing 85,000 stickers: 5,000 machine hours; 10 batches; 20 purchase orders  Maintenance £11,500 Machining 28,300 Setups 550 Purchasing 1,000\begin{array}{lr}\text { Maintenance } & £ 11,500 \\\text { Machining } & 28,300 \\\text { Setups } & 550 \\\text { Purchasing } & 1,000\end{array}
-Refer to Figure 15-2. What is the budgeted cost per sticker? (Round to three decimal places.)


A) £0.468
B) £0.478
C) £0.486
D) £0.487

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