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 monthVariable element per unitRevenue - $34.00 Direct labor$0 $7.20Direct materials 0 12.00Manufacturing overhead 40,500 1.30Selling and administrative expenses 23,200 0.40Total expenses$63,700 $20.90?The activity variance for direct labor in March would be closest to:
A. $2,406 U
B. $2,406 F
C. $216 U
D. $216 F
Answer: D
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