Coderre Corporation manufactures and sells a single product. The company uses un
ID: 2491957 • Letter: C
Question
Coderre Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During July, the company budgeted for 7,500 units, but its actual level of activity was 7,450 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for July:
Data used in budgeting:
$58,300
$21.40
Actual results for July:
The revenue variance for July would be closest to:
$650 U
$1,100 F
$650 F
$1,100 U
Coderre Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During July, the company budgeted for 7,500 units, but its actual level of activity was 7,450 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for July:
Explanation / Answer
Revenue from 7450 units based on standard selling price = 7450 x $35 = $260750
Actual revenue = $261850
Revenue variance
= actual revenue - fexible budget revenue (revenue at standard selling price from actual units sold)
= $261850 - $260750 = $1100 Favourable