Diskind Corporation: calculate revenue variance

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Question

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 7,600 units, but its actual level of activity was 7,550 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:

	Fixed element per month	Variable element per tenant-day
Revenue	—	$35.10

Direct labor	$0	$5.70
Direct materials	0	13.10
Manufacturing overhead	33,000	2.60
Selling and administrative expenses	26,400	4.00
Total expenses	$59,400	$25.40

Actual results for October:

Revenue	$266,200

Direct labor	$43,110
Direct materials	$99,990
Manufacturing overhead	$48,000
Selling and administrative expenses	$30,560

The revenue variance in October would be closest to:

a. $560 F

b. $1,195 F

c. $1,195 U

d. $560 U

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