Merric Company uses an activity-based costing system. Four activities have been identified. The setup activity...
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Accounting
Merric 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:
| Fixed costs per month | $240,000 |
| Variable cost per setup | $ 5,400 |
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?
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