The Company Expects to Perform 25 Setups in May

question 153

Multiple Choice

The company expects to perform 25 setups in May.
-Refer to Figure 11-5. Actual costs incurred were $246,000 fixed and $144,000 variable. If the actual number of setups in May was 30, what is the activity-based flexible budget variance?

• A) $15,000 U
• B) $15,000 F
• C) $12,000 F
• D) $12,000 U

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Definitions:

CIA

Central Intelligence Agency, a civilian foreign intelligence service of the federal government of the United States, tasked with gathering, processing, and analyzing national security information.

Standing Army

A permanent, professional army maintained during both war and peace times.

Democratic Debate

A structured discussion in the context of a democracy where candidates or parties present their views on various issues to inform voters and gain support.

Truman Doctrine

A United States foreign policy established in 1947 to counter Soviet geopolitical expansion during the Cold War through economic and military aid to countries resisting communism.