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:

Saving Rate

The proportion of disposable income that is saved by individuals or households over a period, rather than being spent.

Interest Rates

Rates at which interest is charged or paid for the use of money, typically expressed as an annual percentage rate.

Gross Investment

The total amount of money spent on new capital assets before accounting for depreciation.

Public Investment

Expenditure by the government on capital projects like public infrastructure, education, and health facilities that are intended to improve a country's economic capacity and well-being.