Feemster Corporation Manufactures and Sells a Single Product

question 483

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 selling and administrative expenses in October would be closest to:

• A) $250 F
• B) $40 U
• C) $250 U
• D) $40 F

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Definitions:

Stable

Describes an entity, such as an economy or structure, that is not likely to change or fail; marked by reliability or consistency.

Corporal Punishment

Physical punishment, such as caning or flogging, used as a method to discipline.

Physical Force

The use of bodily strength or power as a means to impact, manipulate, or control persons or objects.

Illegal

Contrary to or forbidden by law.