MacPhail Corporation Manufactures and Sells a Single Product

question 148

Multiple Choice

MacPhail Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During April, the company budgeted for 5,600 units, but its actual level of activity was 5,650 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for April:

Data used in budgeting:

Actual results for April:
-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 April would be closest to:

• A)$4,880 U
• B)$4,090 F
• C)$4,090 U
• D)$4,880 F

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Definitions:

Culture

Culture refers to the inherited ideas, beliefs, values, and knowledge, which constitute the shared bases of social action.

Perception

The process by which sensory information is organized, interpreted, and consciously experienced.

Sensory Skills

Abilities related to the detection, identification, and interpretation of sensory information through sight, sound, smell, taste, and touch.

Physical Energies

The various forms of energy, such as kinetic, potential, thermal, gravitational, sound, light, elastic, and electromagnetic energy, that have physical properties.