Hammes Corporation Manufactures and Sells a Single Product

question 69

Multiple Choice

Hammes Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During February, the company budgeted for 5,500 units, but its actual level of activity was 5,510 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 February would be closest to:

• A)$191 U
• B)$1,651 U
• C)$191 F
• D)$1,651 F

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Definitions:

Conserve Water

The practice of using water efficiently to reduce unnecessary waste and to ensure its availability for future generations.

Descriptive Norms

Refers to the perception of behaviors that are typical or normal within a specific group, guiding members' actions based on what is commonly done.

Injunctive Norms

Social norms that are perceived as approved or disapproved behaviors by a cultural or social group, guiding individuals on what they ought to do.

Focus Theory

An approach in psychology that examines how individuals concentrate their attention or energy on specific thoughts, tasks, or goals and the impact of this focus on behavior and cognition.