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 $5,500$ units, but its actual level of activity was $5,460$ 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 $ $0$ $ $28\mathrm{.}00$

Direct labor $ $0$ $ $3\mathrm{.}50$

Direct materials $09\mathrm{.}60$

Manufacturing overhead $38,6001\mathrm{.}20$

Selling and administrative expenses $24,2000\mathrm{.}30$

Total expenses $ $62,800$ $ $14\mathrm{.}60$

Actual results for June:

Revenue $ $158,886$

Direct labor $ $18,578$

Direct materials $ $50,166$

Manufacturing overhead $ $45,057$

Selling and administrative expenses $ $25,933$

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

Multiple Choice

$$536$ F

$$536$ U

$$8,252$ U

$$8,252$ F