Woofter Corporation Manufactures and Sells a Single Product

question 174

Multiple Choice

Woofter Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During January, the company budgeted for 7,600 units, but its actual level of activity was 7,560 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for January:
-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 January would be closest to:

• A) $12,816 F
• B) $12,280 U
• C) $12,816 U
• D) $12,280 F

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Definitions:

Horizontal Axis

In graphing, the x-axis, which is used to represent the independent variable or the baseline measure for comparison.

Vertical Axis

In a graph or chart, the y-axis that typically represents the dependent variable or the value being measured.

Entire Budget

The total amount of financial resources available or allocated for a specific purpose, project, or period.

Price Of Peaches

The amount of money required to purchase a specific quantity of peaches in the market.