Given the information below what is the activity cost varian

Given the information below, what is the activity cost variance? A. $3,250 U B. $3,250 F C. $5,250 U D. $5,250 F Variable cost per unit 130.00 Fixed cost per month $8,000 Budgeted units sold Actual units sold Actual costs 100 75 $ 23,000

Solution

Budgeted total costs = 8000+(100*130)= 21000 Budgeted total costs for actual units = 8000+(75*130)= 17750 Activity varoance = 21000-17750 = $3250 F Option B is correct