Rogstad Corporation Manufactures and Sells a Single Product

question 207

Multiple Choice

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 net operating income in March would be closest to:

• A) $393 U
• B) $2,963 U
• C) $2,963 F
• D) $393 F

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Definitions:

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