Wyzard Corporation Is a Shipping Container Refurbishment Company That Measures

question 128

Multiple Choice

Wyzard Corporation is a shipping container refurbishment company that measures its output by the number of containers refurbished. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for February. When the company prepared its planning budget at the beginning of February, it assumed that 37 containers would have been refurbished. However, 32 containers were actually refurbished during February.
The revenue variance in the Revenue and Spending Variances column of a report comparing actual results to the flexible budget for February would have been closest to:

• A) $1,800 F
• B) $17,200 F
• C) $1,800 U
• D) $17,200 U

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Definitions:

Expected Number

An average or most probable value calculated based on statistical analysis or probability theory.

Supply Chain Management

The oversight of materials, information, and finances as they move from supplier to manufacturer to wholesaler to retailer to consumer, aiming to streamline a business’s supply-side activities to maximize customer value and gain a competitive advantage in the marketplace.

Loss Incurred

Refers to a financial deficit that results from a business operation, transaction, or other activities.

Unsold Unit

A product unit that remains unsold after being offered to the market, representing a missed revenue opportunity.