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 41

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.Suppose the company expects 25 setups in June.What would be the total budgeted costs of the setup activity?

• A)$135,000
• B)$240,000
• C)$375,000
• D)$397,500

---

Definitions:

Freudian Approaches

Psychological theories and treatments developed by Sigmund Freud, emphasizing unconscious processes and childhood experiences.

Distortion

The alteration of reality or perception in a way that leads to misconception or a skewed understanding.

Denial

A defense mechanism where an individual refuses to accept reality or facts, thereby avoiding facing uncomfortable truths.

Psychological Protections

Mechanisms or strategies used by individuals to defend themselves against perceived threats to their emotional well-being or self-esteem.