Trevorrow Corporation Manufactures and Sells a Single Product

question 213

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 6,000 units, but its actual level of activity was 5,960 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) $8,916 U
• B) $8,916 F
• C) $9,448 U
• D) $9,448 F

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Definitions:

Overwhelmed By Anxiety

A state of feeling excessively worried, nervous, or uneasy to a degree that it may interfere with daily activities.

Obsessive-Compulsive Disorder

A mental health disorder characterized by unreasonable thoughts and fears (obsessions) that lead to compulsive behaviors.

Preoccupied

Being absorbed in thought or excessively concerned with something, often at the expense of awareness of one's surrounding environment.

Reduces Anxiety

The process or action of decreasing feelings of worry, nervousness, or unease typically about an imminent event or something with an uncertain outcome.