Enriques 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 5,000 units, but its actual level of activity was 4,990 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for February:
-The activity variance for net operating income in February would be closest to:
A) $2,716 F
B) $2,716 U
C) $176 U
D) $176 F

Question

Enriques 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 5,000 units, but its actual level of activity was 4,990 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for February: 
-The activity variance for net operating income in February would be closest to:
A) $2,716 F 
B) $2,716 U 
C) $176 U 
D) $176 F

Quizplus · Accepted Answer

The Answer of Enriques 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 5,000 units, but its actual level of activity was 4,990 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for February: 
-The activity variance for net operating income in February would be closest to:
A) $2,716 F 
B) $2,716 U 
C) $176 U 
D) $176 F

Enriques Corporation Manufactures and Sells a Single Product