Newby Company Uses an Activity-Based Costing System $\begin{array}{ll}\text { Fixed costs per month } & \$ 240,000 \\\text { Variable cost per setup } & \$ 5,400\end{array}$

question 125

Multiple Choice

Newby Company uses an activity-based costing system. Four activities have been identified. The setup activity uses the number of setups as its cost driver. The following budget information is available for this activity:
The company expects to perform 25 setups in June. $\begin{array}{ll}\text { Fixed costs per month } & \$ 240,000 \\\text { Variable cost per setup } & \$ 5,400\end{array}$
-Refer to the Figure.Actual costs incurred were $246,000 fixed and $144,000 variable.Suppose the actual number of setups in June was 30.What would be the activity-based flexible budget variance?

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

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Definitions:

Attentive Parents

Caregivers who are highly watchful, responsive, and engaged in their children's lives, supporting their emotional and developmental needs.

Spoiled

Often refers to a situation where an individual, usually a child, is overindulged or receives excessive material gifts, leading to entitled or problematic behavior.

Frustrated

Feeling upset or annoyed as a result of being unable to change or achieve something.

Self-awareness

The conscious knowledge of one's own character, feelings, motives, and desires.