Kuramoto Corporation manufactures and sells a single product. The company uses u

Question

Kuramoto Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During June, the company budgeted for 7,600 units, but its actual level of activity was 7,560 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 June would be closest to:

A) $480 U

B) $1,460 U

C) $480 F

D) $1,460 F

Kuramoto Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During June, the company budgeted for 7,600 units, but its actual level of activity was 7,560 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 June would be closest to: A) $480 U B) $1,460 U C) $480 F D) $1,460 F

Explanation / Answer

C) $480 F

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