Feemster Corporation Manufactures and Sells a Single Product

question 120

Multiple Choice

Feemster Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 5,900 units, but its actual level of activity was 5,850 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October: Data used in budgeting:
Actual results for October:
The activity variance for net operating income in October would be closest to:

• A) $680 U
• B) $680 F
• C) $1,300 F
• D) $1,300 U