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?