Wisseman Corporation Is a Shipping Container Refurbishment Company That Measures

question 353

Multiple Choice

Wisseman Corporation is a shipping container refurbishment company that measures its output by the number of containers refurbished.The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. When the company prepared its planning budget at the beginning of September,it assumed that 28 containers would have been refurbished.However,26 containers were actually refurbished during September.
The activity variance for total expenses for September would have been closest to:

• A) $400 F
• B) $400 U
• C) $3,000 U
• D) $3,000 F

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