Business, 24.04.2020 00:00 tessa70

Scharfenberg Corporation is an oil well service company that measures its output by the number of wells serviced. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for March.

Fixed Element per Month Variable Element/Well Serviced Actual Total for March
Revenue $5,700 $145,100
Employee salaries and wages $50,300 $1,200 $79,300
Servicing materials $700 $12,200
Other expenses $31,600 $31,400

When the company prepared its planning budget at the beginning of March, it assumed that 23 wells would have been serviced. However, 25 wells were actually serviced during March.

The activity variance for "Other expenses" for March would have been closest to:

A. $2,712 F
B. $0
C. $200 F
D. $200 U

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