Question
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
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:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Cost Management Accounting And Control
Authors: Don R. Hansen, Maryanne M. Mowen
3rd Edition
0324002327, 978-0324002324
