Trevorrow 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 6,200 units, but its actual level of activity was 6,160 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for June:Data used in budgeting: Fixed element per monthVariable element per unitRevenue - $27.80 Direct labor$0 $3.10Direct materials 0 10.20Manufacturing overhead 37,200 1.10Selling and administrative expenses 22,800 0.30Total expenses$60,000 $14.70?Actual results for June: Revenue$178,318Direct labor$18,606Direct materials$60,652Manufacturing overhead$43,896Selling and administrative
expenses$24,688?The net operating income in the planning budget for June would be closest to:
A. $30,279
B. $21,220
C. $20,696
D. $30,674
Answer: B
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