Brong Corporation is a shipping container refurbishment company that measures its output by the number of containers refurbished. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for March. Fixed Element per MonthVariable Element per Container RefurbishedActual Total for MarchRevenue $5,900$108,300Employee salaries and wages$49,500 $900$66,000Refurbishing materials $500$9,500Other expenses$40,300 $39,800?When the company prepared its planning budget at the beginning of March, it assumed that 22 containers would have been refurbished. However, 18 containers were actually refurbished during March.?The variance for net operating income in the Revenue and Spending Variances
column of a report comparing actual results to the flexible budget for March would have been closest to:
A. $16,200 U
B. $16,200 F
C. $1,800 F
D. $1,800 U
Answer: C
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