Answer:
The correct answer is $108.
Explanation:
According to the scenario, the computation of the given data are as follows:
We can calculate the activity variance by using following formula:
Activity variance = Planning budget - Flexible budget
Where, Planning budget = $29,900 + ( 3,500 × $10.80)
= $67,700
And Flexible budget = $29,900 + ( 3,490 × $10.80)
= $67,592
By putting the value we get,
Activity variance = $67,700 - $67,592
= $108