Diskind Corporation manufactures and sells a single product. The company uses un
ID: 2480302 • Letter: D
Question
Diskind Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 7,100 units, but its actual level of activity was 7,050 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October:
Data used in budgeting:
$66,900
$22.40
Actual results for October:
The revenue variance in October would be closest to:
$1,000 F
$730 U
$730 F
$1,000 U
Diskind Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 7,100 units, but its actual level of activity was 7,050 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October:
Explanation / Answer
Sales Variance ( Revenue Variance ) = Standard Sales - Actual Sales
= ( 7100 * 34.60 ) - 244930
= 245660 - 244930
= 730 U