Piechocki Corporation Manufactures and Sells a Single Product

question 96

Multiple Choice

Piechocki 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 7,400 units, but its actual level of activity was 7,350 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) $460 F
• B) $1,285 F
• C) $1,285 U
• D) $460 U

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Definitions:

Music Production Industry

The sector of the economy dedicated to creating, producing, and distributing music and sound recordings.

Airline Industry

A sector of the economy composed of companies and organizations involved in the business of transporting passengers and cargo by aircraft.

Complex Interdependence

Complex interdependence reflects a situation in international relations where states and their fortunes are interconnected through multiple channels, diminishing the relevance of military power.

Oligopolistic Firms

Companies operating in a market structure characterized by a few dominant firms, with significant control over their pricing and market strategies.