Vandall Corporation manufactures and sells a single product. Thecompany uses units as the measure of activity in its budgets andperformance reports. During April, the company budgeted for 7,300units, but its actual level of activity was 7,340 units. Thecompany has provided the following data concerning the formulasused in its budgeting and its actual results for April:Data used in budgeting:Fixed element Variable elementper month per unit Revenue – $35.40Direct labor 0 $3.30Direct materials 0 15.90Manufacturing overhead 49,260 1.20Selling andadministrative expenses 26,600 0.10Total expenses $75,800 $20.50 Actual resultsfor April:Revenue $254,146Direct labor $24,722Direct materials $116,496Manufacturing overhead $59,608Selling andadministrative expenses $26,494 The overall revenue and spending variance (i.e., the variance fornet operating income in the revenue and spending variance column onthe flexible budget performance report) for April would be closestto A. $6,740 U. B. $6,740 F. C. $6,144 F. D. $6,144 U.
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