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 5,900 units, but its actual level of activity was 5,850 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: Fixed element per monthVariable element per unitRevenue - $29.90 Direct labor$0 $5.60Direct materials 0 8.60Manufacturing overhead 37,000 1.30Selling and administrative expenses 27,200 0.80Total expenses$64,200 $16.30?Actual results for October: Revenue$176,095Direct labor$31,510Direct materials$49,800Manufacturing overhead$45,775Selling and administrative
expenses$31,670?The activity variance for net operating income in October would be closest to:
A. $1,300 F
B. $1,300 U
C. $680 U
D. $680 F
Answer: C
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