Trevorrow Corporation Manufactures and Sells a Single Product

question 39

Multiple Choice

Trevorrow Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During June, the company budgeted for 6,200 units, but its actual level of activity was 6,160 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for June: Data used in budgeting:
Actual results for June:
The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for June would be closest to:

• A) $9,256 U
• B) $9,256 F
• C) $9,780 U
• D) $9,780 F

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Definitions:

Disclosing

The act of making known or revealing information that was previously private or secret.

Property Damage

Physical harm or destruction caused to someone's property, including buildings, vehicles, and personal possessions.

Personal Injury

Physical or psychological harm caused to an individual due to another's negligence or intentional act.

Agency Relationship

A legal and fiduciary relationship between two parties, where one, the agent, is authorized to act on behalf of the other, the principal, in business transactions.