A shipping container refurbishment company measures its outp…
Questions
A shipping cоntаiner refurbishment cоmpаny meаsures its оutput by the number of containers refurbished. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for a month. Fixed Element per MonthVariable Element per Container RefurbishedActual Total for the monthRevenue $ 4,100$ 158,600Employee salaries and wages$ 50,600$ 1,100$ 92,700Refurbishing materials $ 700$ 27,000Other expenses$ 41,200 $ 40,800When the company prepared its planning budget at the beginning of the month, it assumed that 40 containers would be refurbished. However, 38 containers were actually refurbished. The activity variance for “Refurbishing materials” for the month would have been closest to: