Feemster Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 5,940 units, but its actual level of activity was 5,890 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October: Data used in budgeting: Revenue Direct labor Direct materials Manufacturing overhead Selling and administrative expenses Total expenses Actual results for October: Revenue Direct labor Direct materials Multiple Choice Fixed element per month $258 U $0 $0 0 37,400 26,800 $ 64,200 $ 178,095 $ 33,510 $ 51,800 Manufacturing overhead $ 47,775 Selling and administrative expenses $ 33,670 The activity variance for selling and administrative expenses in October would be closest to: Variable element per unit $ 30.30 $ 6.00 9.00 1.70 1.20 $ 17.90

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Chapter1: Financial Statements And Business Decisions
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Feemster Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance
reports. During October, the company budgeted for 5,940 units, but its actual level of activity was 5,890 units. The company has provided the following
data concerning the formulas used in its budgeting and its actual results for October:
Data used in budgeting:
Revenue
Direct labor
Direct materials
Manufacturing overhead
Selling and administrative expenses
Total expenses
Actual results for October:
Revenue
Direct labor
Direct materials
Multiple Choice
Fixed element per
month
$258 U
$0
$0
0
37,400
26,800
$ 64,200
$ 178,095
$ 33,510
$ 51,800
$ 47,775
$ 33,670
Manufacturing overhead
Selling and administrative expenses
The activity variance for selling and administrative expenses in October would be closest to:
Variable element
per unit
$ 30.30
$ 6.00
9.00
1.70
1.20
$ 17.90
Transcribed Image Text:Feemster Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 5,940 units, but its actual level of activity was 5,890 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October: Data used in budgeting: Revenue Direct labor Direct materials Manufacturing overhead Selling and administrative expenses Total expenses Actual results for October: Revenue Direct labor Direct materials Multiple Choice Fixed element per month $258 U $0 $0 0 37,400 26,800 $ 64,200 $ 178,095 $ 33,510 $ 51,800 $ 47,775 $ 33,670 Manufacturing overhead Selling and administrative expenses The activity variance for selling and administrative expenses in October would be closest to: Variable element per unit $ 30.30 $ 6.00 9.00 1.70 1.20 $ 17.90
Actual results for October:
Revenue
Direct labor
Direct materials
Manufacturing overhead
Selling and administrative expenses
The activity variance for selling and administrative expenses in October would be closest to:
Multiple Choice
$258 U
$60 F
$60 U
$ 178,095
$ 33,510
$ 51,800
$ 47,775
$ 33,670
$258 F
Transcribed Image Text:Actual results for October: Revenue Direct labor Direct materials Manufacturing overhead Selling and administrative expenses The activity variance for selling and administrative expenses in October would be closest to: Multiple Choice $258 U $60 F $60 U $ 178,095 $ 33,510 $ 51,800 $ 47,775 $ 33,670 $258 F
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