Rudick Corporation Is an Oil Well Service Company That Measures

Multiple Choice

Rudick Corporation is an oil well service company that measures its output by the number of wells serviced. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. When the company prepared its planning budget at the beginning of July, it assumed that 34 wells would have been serviced. However, 36 wells were actually serviced during July.
The activity variance for revenue for July would have been closest to:

A) $10,800 U
B) $9,000 F
C) $9,000 U
D) $10,800 F