Tabeling Corporation Manufactures and Sells a Single Product

question 275

Multiple Choice

Tabeling Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During August, the company budgeted for 6,500 units, but its actual level of activity was 6,540 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for August:

Data used in budgeting:

Actual results for August:

-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 August would be closest to:

• A)$10,362 F
• B)$10,362 U
• C)$10,970 F
• D)$10,970 U

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Definitions:

Stock Market Analysts

Professionals who evaluate and report on the potential performance of stocks or the stock market, offering recommendations to investors.

Recommendations

Advice given by analysts or experts on buying, holding, or selling stocks or other securities.

Liquidity

The ease with which an asset can be quickly bought or sold in the market without affecting its price.

Small-Firm Effect

The observed phenomenon that, on average, smaller firms have historically provided higher risk-adjusted returns than larger firms.