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

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