Wohner Corporation Manufactures and Sells a Single Product

Multiple Choice

Wohner Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During August, the company budgeted for 5,000 units, but its actual level of activity was 5,050 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for August:

Data used in budgeting:

Actual results for August:
-The net operating income in the flexible budget for August would be closest to:

A) $26,700
B) $19,446
C) $27,620
D) $19,836