Trevorrow Corporation Manufactures and Sells a Single Product

question 188

Multiple Choice

Trevorrow Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During June, the company budgeted for 6,000 units, but its actual level of activity was 5,960 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for June:Data used in budgeting: Actual results for June:
The activity variance for net operating income in June would be closest to:

• A) $532 F
• B) $532 U
• C) $8,916 U
• D) $8,916 F

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Definitions:

Data-based Decisions

Making decisions based on the analysis and interpretation of data, rather than intuition or personal experience alone.

Participative Decision Making

A decision-making process where all members of the group are involved to reach a consensus or agreement.

Act Autonomously

The capacity or action of making one's own decisions independently, often associated with self-direction and personal responsibility.

Participative Decision Making

A collaborative decision-making process in which members of a group or organization share in making decisions that affect them, aiming to increase commitment and improve decision outcomes.