Hammes Corporation Manufactures and Sells a Single Product

Multiple Choice

Hammes Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During February, the company budgeted for 5,500 units, but its actual level of activity was 5,510 units. The company has provided the following data concerning the formulas to be used in its budgeting:

-The activity variance for net operating income in February would be closest to:

A) $191 U
B) $1,651 U
C) $191 F
D) $1,651 F