Item 16

Item 16

Skoff 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 March.

	Fixed Element per Month	Variable Element per Container Refurbished	Actual Total for March
Revenue		$ 4,000	$ 130,000
Employee salaries and wages	$ 42,700	$ 1,000	$ 75,600
Refurbishing materials		$ 600	$ 18,800
Other expenses	$ 37,900		$ 38,400

When the company prepared its planning budget at the beginning of March, it assumed that 35 containers would have been refurbished. However, 32 containers were actually refurbished during March.

The activity variance for Refurbishing materials for March would have been closest to: