Answer Happy

The Sofa Manufacturing Company has determined that wages and salaries can be estimated using the cost formula of $1,280 per month plus $250 per sofa. The company had estimated that they would produce 108 sofas in the Month of March, but they actually produced 104 sofas. The actual wages and salaries incurred during March was $28,325. For the month of March, the activity variance for wages and salaries would be:

O O O $1,000 U $45 U $1,000 F $45 F