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:

Learning Disability

A neurological condition that affects a person's ability to receive, process, store, or respond to information, causing difficulties with learning.

Instrumental Conditioning

A learning process through which the strength of a behavior is modified by reinforcement or punishment; also known as operant conditioning.

Respondent Conditioning

A form of learning in which a stimulus becomes associated with a consequence, also known as classical conditioning.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.