Diskind Corporation Manufactures and Sells a Single Product

question 22

Multiple Choice

Diskind Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 6,700 units, but its actual level of activity was 6,650 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October:

Data used in budgeting:
Actual results for October:
-The revenue variance for October would be closest to:

• A)$680 F
• B)$1,040 F
• C)$1,040 U
• D)$680 U

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Definitions:

Euros

The official currency of the eurozone, used by 19 of the 27 European Union member countries, represented by the symbol €.

Nominal Exchange Rate

The current market price at which one currency can be exchanged for another.

Real Exchange Rate

The rate at which two currencies can be exchanged for each other, adjusted for inflation, which represents the true purchasing power.

Inflation Rate

A rise in the cost percentage of goods and services in an economy during a certain period.