Eberley Corporation's Cost Formula for Its Manufacturing Overhead Is $25

Eberley Corporation's cost formula for its manufacturing overhead is $25, 700 per month plus $10 per machine-hour.For the month of July, the company planned for activity of 5, 900 machine-hours, but the actual level of activity was 5, 920 machine-hours.The actual manufacturing overhead for the month was $86, 800. The activity variance for manufacturing overhead in July would be closest to:

A) $2, 100 U
B) $200 U
C) $200 F
D) $2, 100 F

Correct Answer:

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