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:

Communication Process

The sequence of steps through which information is transmitted and received between individuals or entities.

Managerial Success

Achieving organizational goals effectively and efficiently through planning, organizing, leading, and controlling resources.

Arbitrator

An independent individual or body officially appointed to settle a dispute, often used in the context of labor relations and commercial contracts.

Binding Decision

A final and enforceable ruling or judgment made by an authority that must be followed.