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
Revenue: $5,700
Employee salaries and wages: $50,300
Servicing materials: $700
Other expenses: $31,600
Variable Element per Well Serviced
Employee salaries and wages: $1,200
Servicing materials: $12,200
Actual Total for March
Revenue: $145,100
Employee salaries and wages: $79,300
Servicing materials: $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:
Multiple Choice
$2,712 F
$0
$200 F
$200 U