Rogstad Corporation Manufactures and Sells a Single Product

question 34

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:

Fundamental Attribution Error

The inclination to place excessive focus on personal characteristics while undervaluing the impact of environmental conditions in interpreting the actions of others.

Individualism

A cultural orientation that values the independence, autonomy, and self-interest of individuals over groups or collectives.

Protestantism

A branch of Christianity that originated with the Reformation, a movement against what its followers perceived to be errors in the Roman Catholic Church.

Socioeconomic Status

The social standing or class of an individual or group, often measured as a combination of education, income, and occupation.