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ssume that a company provided the following cost formulas for three of its expenses (where q refers to the number of hours worked): Rent (fixed)

ssume that a company provided the following cost formulas for three of its expenses (where q refers to the number of hours worked):

Rent (fixed) $ 3,000
Supplies (variable) $ 4.00q
Utilities (mixed) $150 + $0.75q

The companys planned level of activity was 2,000 hours and its actual level of activity was 1,855 hours. The actual amount of supplies expense for the period was $7,800. What is the activity variance for supplies expense?

Multiple Choice

$200 U

$200 F

$580 U

$580 F

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