Newspaper Delivery Co. delivers newspapers. In 2015, the company budgeted for 1,000 deliveries, but its actual level of activity was 1,200 deliveries. The company has provided the following data concerning its budget and actual results for 2015. Assume that the wages of a neighbor boy are a variable cost and bike rental is a fixed cost. Static Budget Actual Results Revenue $3,000 $3,500 Costs: Wages of a neighbor boy $1,000 $1,300 Bike rental $200 $175 Total costs $1,200 $1,475 Net income $1,800 $2,025 The activity variance for 'wages of a neighbor boy' would be: A. $300 U B. $200 F C. $200 U D. $0

Newspaper Delivery Co. delivers newspapers. In 2015, the company budgeted for 1,000 deliveries, but its actual level of activity was 1,200 deliveries. The company has provided the following data concerning its budget and actual results for 2015. Assume that the wages of a neighbor boy are a variable cost and bike rental is a fixed cost. Static Budget Actual Results Revenue $3,000 $3,500 Costs: Wages of a neighbor boy $1,000 $1,300 Bike rental $200 $175 Total costs $1,200 $1,475 Net income $1,800 $2,025 The activity variance for 'wages of a neighbor boy' would be: A. $300 U B. $200 F C. $200 U D. $0

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 9E: Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost...

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