Villafane, SA., 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 the above

Question

Villafane, SA., 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 the above

Quizplus · Accepted Answer

The Answer of Villafane, SA., 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 the above