Rogstad 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 6,700 units, but its actual level of activity was 6,670 units. The company has provided the following data concerning the formulas to be used in its budgeting:

-The activity variance for selling and administrative expenses in March would be closest to:
A) $12 U
B) $12 F
C) $38 U
D) $38 F

Question

Rogstad 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 6,700 units, but its actual level of activity was 6,670 units. The company has provided the following data concerning the formulas to be used in its budgeting:
 
-The activity variance for selling and administrative expenses in March would be closest to:
A) $12 U 
B) $12 F 
C) $38 U 
D) $38 F

Quizplus · Accepted Answer

11ea7761_177a_1076_81a5_9fdab1c5a9d8_TB2580_00 Because the flexible budget is less than the planning budget, the variance is favorable (F).

Rogstad Corporation Manufactures and Sells a Single Product