Variances from activity-based costs (Appendix 11.1). Assume Texas Instruments uses activity-based costing for variable overhead costs. For June, it has three cost drivers with the following standard and actual amounts for 10,000 units of output.

Prepare an analysis of the variances like that in Exhibit 1 1 .20.

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Standard Standard Input Activity Center Cost Driver Rate per Cost for 10,000 Units of Actual Actual Number of Driver Unit Output Costs Inputs Used Quality Test $0.50 40,000 test $20,000 38,000 test testing minutes minutes minutes Energy Machine $1.00 40,000 machine $40,000 42,000 hours hours machine hours Indirect Direct $1.00 60,000 labor $56,800 56,000 labor labor hours hours hours