Wohner Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During August, the company budgeted for 5,000 units, but its actual level of activity was 5,050 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for August:

Data used in budgeting:

Actual results for August:
-The activity variance for net operating income in August would be closest to:
A)$920 F
B)$7,060 U
C)$7,060 F
D)$920 U

Question

Wohner Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During August, the company budgeted for 5,000 units, but its actual level of activity was 5,050 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for August:

Data used in budgeting:

Actual results for August:

-The activity variance for net operating income in August would be closest to:

Data used in budgeting:

Actual results for August:  
-The activity variance for net operating income in August would be closest to:
A)$920 F 
B)$7,060 U 
C)$7,060 F 
D)$920 U

Quizplus · Accepted Answer

The Answer of Wohner Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During August, the company budgeted for 5,000 units, but its actual level of activity was 5,050 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for August:

Data used in budgeting:

Actual results for August:  
-The activity variance for net operating income in August would be closest to:
A)$920 F 
B)$7,060 U 
C)$7,060 F 
D)$920 U

Wohner Corporation Manufactures and Sells a Single Product