Solution-What the activity variance for net operating

What the activity variance for net operating income in march

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Question - Rogstad Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During March, the company budgeted for 6,700 units, but its actual level of activity was 6,670 units. The company has provided the following data concerning the formulas to be used in its budgeting:

Fixed element per month Variable element per unit

Revenue $0 $34.00

Direct labor $0 $7.20

Direct materials 0 12.00

Manufacturing overhead 40,500 1.30

Selling and administrative expenses 23,200 0.40

Total expenses $63,700 $20.90

Required - What the activity variance for net operating income in March?

Reference no: EM132966477

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What the activity variance for net operating income in march

Reference no: EM132966477

Reference no: EM132966477

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