Figure 11-5. 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:
The company expects to perform 25 setups in May.
Refer to Figure 11-5.If the company expects 25 setups in the month of May,what would be the total budgeted costs of the setup activity?
A)$240,000
B)$375,000
C)$135,000
D)$397,500
E)none of these

Question

Figure 11-5. 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:
 The company expects to perform 25 setups in May.
Refer to Figure 11-5.If the company expects 25 setups in the month of May,what would be the total budgeted costs of the setup activity?
A)$240,000 
B)$375,000 
C)$135,000 
D)$397,500 
E)none of these

Quizplus · Accepted Answer

The Answer of Figure 11-5. 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:
 The company expects to perform 25 setups in May.
Refer to Figure 11-5.If the company expects 25 setups in the month of May,what would be the total budgeted costs of the setup activity?
A)$240,000 
B)$375,000 
C)$135,000 
D)$397,500 
E)none of these