810 Given the information below what is the activity cost va

8-10 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

Activity cost variance is = Actual cost - Standard cost for Actual units

That is = 23000- ((75*130)+8000) = $5,520 Unfavourable

Option c) is the Answer