Neeb Corporation Manufactures and Sells a Single Product

question 266

Multiple Choice

Neeb Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During January, the company budgeted for 7,000 units, but its actual level of activity was 7,040 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for January:
Data used in budgeting:
Actual results for January:

-The activity variance for selling and administrative expenses in January would be closest to:

• A) $446 U
• B) $16 U
• C) $446 F
• D) $16 F

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Definitions:

Capacitor-start

A motor design that includes a capacitor in the starting circuit for improved startup torque, commonly used in single-phase AC motors.

Capacitor-run Motors

Electric motors that use a capacitor in their circuit for the purpose of running efficiently, often found in HVAC systems and smaller machinery.

Paper And Foil

Materials often used in the construction of capacitors, with paper acting as the dielectric medium and foil as electrodes.

Phase-shift

The change in phase angle between two points in a wave or between two waves, which can affect wave interference and signal transmission.