20.

Washington and Lee 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 5,900 units, but its actual level of activity was 5,890 units. Washington and Lee provides you with the following data concerning the formulas used in its budgeting and its actual results for February:

Data used in budgeting:
	Fixed element per month	Variable element per unit
Revenue	0	$45.30
Direct labor	$0	$6.20
Direct materials	0	19.10
Manufacturing overhead	41,200	1.20
Selling and administrative expenses	26,600	.50
Total expenses	$67,800	$27.00

Actual results for February:
Revenue	$216,000
Direct labor	$29,300
Direct materials	$93,800
Manufacturing overhead	$43,800
Selling and administrative expenses	$28,400

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

$1,683 U

$183 U

$183 F

$1,683 F

21.

Ben Casey Clinic uses client-visits as its measure of activity. During October, the clinic budgeted for 2,300 client-visits, but its actual level of activity was 2,320 client-visits. Ben Casey Clinic has provided the following data concerning the formulas to be used in its budgeting:

	Fixed element per month	Variable element per client-visit
Revenue	0	$70.50
Personnel expenses	$44,500	$23.60
Medical supplies	1,240	10.50
Occupancy expenses	9,690	2.20
Administrative expenses	6,690	.70
Total expenses	$62,120	$37.00

The activity variance for administrative expenses in October would be closest to:

$14 F

$210 F

$14 U

$210 U