Coderre Corporation Manufactures and Sells a Single Product

question 61

Multiple Choice

Coderre Corporation manufactures and sells a single product.The company uses units as the measure of activity in its budgets and performance reports.During July, the company budgeted for 7, 800 units, but its actual level of activity was 7, 780 units.The company has provided the following data concerning the formulas used in its budgeting and its actual results for July: Data used in budgeting: Actual results for July: The revenue variance for July would be closest to:

• A)$6, 664 U
• B)$6, 664 F
• C)$6, 070 U
• D)$6, 070 F

---

Definitions:

Accrued Revenues

Revenues that have been earned but not yet received in cash or recorded at the statement date.

Current Liabilities

Short-term financial obligations due within one year, including accounts payable, short-term debt, and other accrued liabilities.

Balance Sheet

A financial statement that presents a company's financial position, including assets, liabilities, and equity, at a specific point in time.

Closing Process

The process of transferring the balances of temporary accounts to permanent accounts at the end of the accounting period.