Lenci Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During May, the company budgeted for 5,100 units, but its actual level of activity was 5,050 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for May:
Data used in budgeting:
Actual results for May:

-The revenue variance for May would be closest to:
A) $4,150 F
B) $2,170 F
C) $2,170 U
D) $4,150 U

Question

Lenci Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During May, the company budgeted for 5,100 units, but its actual level of activity was 5,050 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for May:
Data used in budgeting:
  Actual results for May:
 
-The revenue variance for May would be closest to:
A) $4,150 F 
B) $2,170 F 
C) $2,170 U 
D) $4,150 U

Quizplus · Accepted Answer

11ea7761_1783_1164_81a5_8759e3b04dcc_TB2580_00 Because the actual revenue is less than the flexible budget, the variance is unfavorable (U).

Lenci Corporation Manufactures and Sells a Single Product