Harold Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During March, the company budgeted for 7,900 units, but its actual level of activity was 7,860 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for March: Data used in budgeting:
Actual results for March:
The activity variance for selling and administrative expenses in March would be closest to:

Question

Harold Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During March, the company budgeted for 7,900 units, but its actual level of activity was 7,860 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for March: Data used in budgeting:
 Actual results for March:
 The activity variance for selling and administrative expenses in March would be closest to:

Quizplus · Accepted Answer

11eacbfc_c590_f54e_8ffe_b96b316ccba8_TB7552_00 Because the flexible budget is less than the planning budget, the variance is favorable (F).

Harold Corporation Manufactures and Sells a Single Product