Villanova, Inc., has done a cost analysis for its production of rubber stamps. The following activities and cost drivers have been developed: Following are the actual costs of producing 35,000 rubber stamps: 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 design?
A) $40 F
B) $30 U
C) $15 F
D) $100 U

Question

Villanova, Inc., has done a cost analysis for its production of rubber stamps. The following activities and cost drivers have been developed:  Following are the actual costs of producing 35,000 rubber stamps: 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 design?
A) $40 F 
B) $30 U 
C) $15 F 
D) $100 U

Quizplus · Accepted Answer

The Answer of Villanova, Inc., has done a cost analysis for its production of rubber stamps. The following activities and cost drivers have been developed:  Following are the actual costs of producing 35,000 rubber stamps: 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 design?
A) $40 F 
B) $30 U 
C) $15 F 
D) $100 U