Palczewski Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During December, the company budgeted for 5,000 units, but its actual level of activity was 4,980 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 December would be closest to:
A) $2,372 U
B) $328 F
C) $2,372 F
D) $328 U

Question

Palczewski Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During December, the company budgeted for 5,000 units, but its actual level of activity was 4,980 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 December would be closest to:
A) $2,372 U 
B) $328 F 
C) $2,372 F 
D) $328 U

Quizplus · Accepted Answer

The Answer of Palczewski Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During December, the company budgeted for 5,000 units, but its actual level of activity was 4,980 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 December would be closest to:
A) $2,372 U 
B) $328 F 
C) $2,372 F 
D) $328 U

Palczewski Corporation Manufactures and Sells a Single Product