Assume that the cost formula for one of a company's variable expenses is $5.10 per unit.The company's planned level of activity was 2,000 units and its actual level of activity was2,190 units. The actual amount of this expense was $10,800. The activity variance for thisexpense is:O $969 U.O $769 U.$169 F.O $169 U.

A variance is the difference, for a given item or activity, between the actual cost incurred and the…

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Assume that the cost The company's planned level of activity was 2,000 units and its acte $10.800. The a

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

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Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

Assume that the cost formula for one of a company's variable expenses is $5.10 per unit.
The company's planned level of activity was 2,000 units and its actual level of activity was
2,190 units. The actual amount of this expense was $10,800. The activity variance for this
expense is:
O $969 U.
O $769 U.
$169 F.
O $169 U.

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