Harald, Inc -Refer to the Figure What Is the Budgeted Cost Per Sticker (Rounded to Three

Harald, Inc., has done a cost analysis for its production of bumper stickers. The following activities and cost drivers have been developed:
$$\begin{array} { l l } \text { Activit } & \text { Cost Formula } \\\hline \text { Maintenance } & \$ 11,000 + \$ 0.11 \text { per machine hour } \\\text { Machining } & \$ 25,000 + \$ 0.50 \text { per machine hour } \\\text { Setups } & \$ 50 \text { per batch } \\\text { Purchasing } & \$ 200 + \$ 45 \text { per purchase order }\end{array}$$
-Refer to the figure.Following are the actual costs of producing 85,000 stickers: 5,000 machine hours; 10 batches; 20 purchase orders $$\begin{array} { l r } \text { Maintenance } & \$ 11,500 \\\text { Machining } & 28,300 \\\text { Setups } & 550 \\\text { Purchasing } & 1,000\end{array}$$ What is the budgeted cost per sticker (rounded to three decimal places) ?

A) $0.468
B) $0.478
C) $0.486
D) $0.487

Correct Answer:

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