Schoening 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 January.

Fixed Element per Month Variable Element per Container Refurbished Actual Total for January Revenue $ 4,100 $ 158,600 Employee salaries and wages $ 50,600 $ 1,100 $ 92,700 Refurbishing materials $ 700 $ 27,000 Other expenses $ 41,200 $ 40,800

When the company prepared its planning budget at the beginning of January, it assumed that 40 containers would have been refurbished. However, 38 containers were actually refurbished during January.

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

Question 6 options:

$1,000 F

$1,000 U

$1,400 F

$1,400 U