Vandall 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 7,300 units, but its actual level of activity was 7,340 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for April The revenue variance for April would be closest to: A. $4,274 F B. $5,690 F C. $5,690 U D. $4,274 U 2. The spending variance for direct materials in April would be closest to: A. $210 U B. $210 F C. $426 U D. $426 F 3. The spending variance for manufacturing overhead in April would be closest to: A. $1,600 U B. $1,648 F C. $1,600 F D. $1,648 U
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Vandall 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 7,300 units, but its actual level of activity was 7,340 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for April
- The revenue variance for April would be closest to:
A. $4,274 F
B. $5,690 F
C. $5,690 U
D. $4,274 U
2. The spending variance for direct materials in April would be closest to:
A. $210 U
B. $210 F
C. $426 U
D. $426 F
3. The spending variance for manufacturing
A. $1,600 U
B. $1,648 F
C. $1,600 F
D. $1,648 U
4. 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. $6,144 F
B. $6,740 U
C. $6,740 F
D. $6,144 U
Please show the calculation step.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
