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:

Double

A data type used in programming to represent floating point numbers with double the precision of the standard float type.

Float

A float refers to a floating-point number, which is a way of representing real numbers in computing that can handle fractions.

Precision

The degree of exactness with which a value is expressed or measured in computing and mathematics.

Numerical Accuracy

The degree to which the result of a computation conforms to the correct value, affected by various factors including floating-point representation and algorithmic design.