Trevorrow Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During June, the company budgeted for 5,000 units, but its actual level of activity was 4,960 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for June:

Data used in budgeting:

	Fixed element per month	Variable element per unit
Revenue	$ 0	$ 30.00
Direct labor	$ 0	$ 2.90
Direct materials	0	10.80
Manufacturing overhead	38,100	1.10
Selling and administrative expenses	23,700	0.40
Total expenses	$ 61,800	$ 15.20

Actual results for June:

Revenue	$ 151,350
Direct labor	$ 13,867
Direct materials	$ 51,343
Manufacturing overhead	$ 43,486
Selling and administrative expenses	$ 25,754

The activity variance for net operating income in June would be closest to:

Multiple Choice

• $592 F

• $592 U

• $4,700 F

• $4,700 U