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Lady_Fox [76]
3 years ago
6

Petrus Framing's cost formula for its supplies cost is $2,300 per month plus $6 per frame. For the month of March, the company p

lanned for activity of 861 frames, but the actual level of activity was 856 frames. The actual supplies cost for the month was $7,790. The activity variance for supplies cost in March would be closest to:
Business
1 answer:
Alchen [17]3 years ago
8 0

Answer:

$30 Favorable

Explanation:

Calculation for the activity variance for supplies cost in March

Using this formula

Activity variance = (Actual units - Budgeted units) * Variable cost

Where,

Actual units=856

Budgeted units=861

Variable cost=$6

Let plug in the formula

Activity variance=(856-861) * $6

Activity variance=5*$6

Activity variance=$30 Favorable

Therefore the activity variance for supplies cost in March would be closest to: $30 Favorable

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