Bienestar, Inc., has done a cost analysis for its production of vests. The following activities and cost drivers have been developed: Following are the actual costs of producing 75,000 vests: 5,000 machine hours; 10 batches; 20 purchase orders
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

Question

Bienestar, Inc., has done a cost analysis for its production of vests. The following activities and cost drivers have been developed:  Following are the actual costs of producing 75,000 vests: 5,000 machine hours; 10 batches; 20 purchase orders
 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

Quizplus · Accepted Answer

To calculate the budget variance for total costs, we need to compare the actual cost incurred to the total budgeted cost. However, the total budgeted cost is not given in the problem. Therefore, we cannot find the exact budget variance. Thus, the answer is none of these.