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sally co.. provides house cleaning services. The company uses the number of jobs to measure activity. At the beginning of April, the company budgeted for

  1. sally 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:

    sally Co.

    For the Month Ended April 30

    Revenue/Cost

    Formulas

    Actual

    Results

    Planning

    Budget

    Number of jobs (Q)

    90

    80

    Revenue

    $100Q

    8,900

    8,000

    Expenses:

    Variable expenses

    ?

    3,800

    3,200

    Fixed expense

    ?

    2,100

    2,500

    Total expenses

    5,900

    5,700

    Net operating income

    3,000

    2,300

    What is the amount of activity variance for variable expenses in Sally's performance report for April?

    A.

    $400 unfavorable

    B.

    $600 favorable

    C.

    $600 unfavorable

    D.

    $400 favorable

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