Villanova, Inc., has done a cost analysis for its production of rubber stamps. The following activities and cost drivers have been developed:

\begin{array} { l l } \text { Activity } & \text { Cost Formula } \\ \text { Design } & \$ 5,000 + \$ 0.05 \text { per machine hour } \\ \text { Machining } & \$ 25,000 + \$ 0.01 \text { per machine hour } \\ \text { Setups } & \$ 35 \text { per batch } \\ \text { Purchasing } & \$ 50 + \$ 15 \text { per purchase order } \end{array}

Following are the actual costs of producing 35,000 rubber stamps: 1,000 machine hours; 5 batches; 30 purchase orders

\begin{array} { l r } \text { Design } & \$ 5,080 \\ \text { Machining } & ? \\ \text { Setups } & ? \end{array}

The following variances were given in the activity performance report:

\begin{array} { l r } \text { Design } & ? \\ \text { Machining } & \$ 40 \mathrm {~F} \\ \text { Setups } & \$ 15 \mathrm {~F} \\ \text { Purchasing } & ? \end{array}

What is the actual cost of machining?
A)$24,970
B)$25,010
C)$25,050
D)none of these

With an Activity Flexible Budget, a Budget Variance Is Calculated

Multiple Choice