Skoff Corporation Is a Shipping Container Refurbishment Company That Measures

question 43

Multiple Choice

Skoff Corporation is a shipping container refurbishment company that measures its output by the number of containers refurbished. 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 35 containers would have been refurbished. However, 32 containers were actually refurbished during March.
The activity variance for "Refurbishing materials" for March would have been closest to:

• A) $1,800 F
• B) $2,200 U
• C) $1,800 U
• D) $2,200 F

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Definitions:

Carbon Dioxide

An invisible, scentless gas created when carbon and organic compounds are combusted and through the process of breathing, used by plants during photosynthesis.

Heart

An organ comprised of muscle in the majority of animals that circulates blood through the vessels of the circulatory system by pumping.

Angina

Chest pain or discomfort caused by reduced blood flow to the heart muscle.

Chest Pain

A discomfort or pain that one feels anywhere along the front of the body between the neck and upper abdomen.