Lartey Corporation's Cost Formula for Its Selling and Administrative Expense

question 286

Multiple Choice

Lartey Corporation's cost formula for its selling and administrative expense is $22,200 per month plus $27 per unit. For the month of December, the company planned for activity of 5,300 units, but the actual level of activity was 5,270 units. The actual selling and administrative expense for the month was $168,150.
-The activity variance for selling and administrative expense in December would be closest to:

• A)$810 U
• B)$2,850 F
• C)$2,850 U
• D)$810 F

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Definitions:

Ego-oriented Goal

A goal set with the intention of proving one’s own competence or superiority, often based on external validation or comparison with others.

Task-oriented Goal

Objectives focused on completing a specific task or achieving a particular result, often emphasizing performance and efficiency.

Social Goal

An objective or aim that is influenced by or aimed at benefiting others or fulfilling societal expectations.

Ego-oriented Goal

Objectives where the primary focus is on self-improvement relative to one's own past performances, emphasizing personal achievement and mastery.