Answer:
Activity Variance for net operating Income = $ 10598 Unfavorable
Explanation:
Activity Variance for net operating Income = $ 10598 Unfavorable
Actual Budgeted
6600 Units 6600 Units
Revenue $194,472 $ 185,460
Direct labor $16,145 $ 16500
Direct materials $67,059 $ 68640
Manufacturing overhead $45,587 $ 45620
Selling and
<u>Administrative expenses $25,363 $ 24980</u>
Total Expenses $ 154154 155740
Net Op. Income $ 40,318 $ 29,720
The activity variance for net operating income = Actual- budget=
= $ 40,318 - $ 29,720
= $ 10598 Unfavorable