Answer:
$354 Favorable
Explanation:
Net Operating Income in Planned budget = Revenue - Total Expense
Net Operating Income in Planned budget = (3,100*$35.10) - (3,100*$17.40 + $44,400)
Net Operating Income in Planned budget = $108,810 - $98,340
Net Operating Income in Planned budget = $10,470
Net Operating Income in Flexible budget = Revenue - Total Expense
Net Operating Income in Flexible budget = (3,080*$35.10) - (3,080*$17.40 + $44,400)
Net Operating Income in Flexible budget = $108,108 - $97,992
Net Operating Income in Flexible budget = $10,116
Activity variance for net operating income = Net Operating Income in Planned budget - Net Operating Income in Flexible budget
Activity variance for net operating income = $10,470 - $10,116
Activity variance for net operating income = $354 Favorable
