Answer:
The activity variance for manufacturing overhead in March would be closest to $6240
Explanation:
As per given Data
Total overheads = $31,600 + (Machine hours x $52)
Bu using this equation we will calculate the activity variance
Planned machine hours = 8,100 hours
Placing value in the formula
Planned Manufacturing overheads = $31,600 + ( 8,100 hours x $52 )
Planned Manufacturing overheads = $452,800
Actual machine hours = 7,980 hours
Applied Manufacturing overheads = $31,600 + ( 7,980 x $52 )
Applied Manufacturing overheads = $446,560
Activity Variance for manufacturing overhead = Planned Manufacturing overheads - Applied Manufacturing overheads
Activity Variance for manufacturing overhead = $452,800 - $446,560 = $6,240
