Scharfenberg Corporation is an oil well service company that measures its output by the number of wells serviced. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for March. When the company prepared its planning budget at the beginning of March, it assumed that 23 wells would have been serviced. However, 25 wells were actually serviced during March.The activity variance for "Other expenses" for March would have been closest to:
A) $0
B) $200 F
C) $2,712 F
D) $200 U

Question

Scharfenberg Corporation is an oil well service company that measures its output by the number of wells serviced. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for March.  When the company prepared its planning budget at the beginning of March, it assumed that 23 wells would have been serviced. However, 25 wells were actually serviced during March.The activity variance for "Other expenses" for March would have been closest to:
A) $0 
B) $200 F 
C) $2,712 F 
D) $200 U

Quizplus · Accepted Answer

The Answer of Scharfenberg Corporation is an oil well service company that measures its output by the number of wells serviced. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for March.  When the company prepared its planning budget at the beginning of March, it assumed that 23 wells would have been serviced. However, 25 wells were actually serviced during March.The activity variance for "Other expenses" for March would have been closest to:
A) $0 
B) $200 F 
C) $2,712 F 
D) $200 U

Scharfenberg Corporation Is an Oil Well Service Company That Measures