What is the budget variance for machining

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Question - Walterboro, Inc., has done a cost analysis for its production of decals. 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

Following are the actual costs of producing 85,000 decals: 5,000 machine hours; 10 batches; 20 purchase orders

Maintenance $11,500

Machining 28,300

Setups 550

Purchasing 1,000

What is the budget variance for machining in an activity-based performance report?

Reference no: EM131908398

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