Schoening Corporation Is a Shipping Container Refurbishment Company That Measures

Schoening Corporation is a shipping container refurbishment company that measures its output by the number of containers refurbished. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for January.
When the company prepared its planning budget at the beginning of January, it assumed that 40 containers would have been refurbished. However, 38 containers were actually refurbished during January.
-The activity variance for "Refurbishing materials" for January would have been closest to:

A) $1,400 U
B) $1,000 F
C) $1,000 U
D) $1,400 F

Correct Answer:

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