Trevorrow Corporation Manufactures and Sells a Single Product

question 395

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 6,200 units, but its actual level of activity was 6,160 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) $524 F
• B) $524 U
• C) $9,256 U
• D) $9,256 F

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Definitions:

Gas & Electric Company

A utility company providing natural gas and electricity services to residential, commercial, and industrial customers.

Accounting Equation

Formula that represents the relationship between the assets, liabilities, and owner's equity of a company: Assets = Liabilities + Owner’s Equity.

Identification Codes

Unique sequences of numbers or letters used to identify specific items, individuals, transactions, or documents.

Clients Paid

Transactions where clients or customers have settled their invoices or bills, transferring money to the service provider or seller.