Feemster Corporation Manufactures and Sells a Single Product

question 325

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

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Definitions:

Unethical Act

Behaviors or actions that violate moral or professional principles, often leading to negative consequences.

Illegal

Actions or activities that are forbidden by law, which can lead to penalties or punishment if one is caught and convicted.

Legal But Unethical

Actions or practices that may not violate laws but are considered wrong or inappropriate according to ethical standards.

Bankruptcy

A legal proceeding involving a person or business that is unable to repay outstanding debts. The process begins with a petition filed by the debtor or on behalf of creditors.