1. A&B Co. provides house cleaning services. The company uses the number of jobs to measure activity. At the beginning of April, the company budgeted for 80 jobs, but the actual number of jobs turned out to be 90. A report comparing the budgeted revenues and costs to the actual revenues and costs appears below:
3. A&B Co.
4. For the Month Ended April 30
7. Revenue/Cost
8. Formulas
9. Actual
10. Results
11. Planning
12. Budget
18. Number of jobs (Q)
20. 90
21. 80
27. Revenue
28. $100Q
29. 8,900
30. 8,000
31. Expenses:
36. Variable expenses
37. ?
38. 3,800
39. 3,200
41. Fixed expense
42. ?
43. 2,100
44. 2,500
45. Total expenses
47. 5,900
48. 5,700
49. Net operating income
51. 3,000
52. 2,300
54. What is the amount of activity variance for variable expenses in A&B's performance report for April?
55. A.$600 unfavorable
56. B.$400 unfavorable
57. C.$600 favorable
58. D.$400 favorable