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Trevorrow Corporation manufactures and sells a single product. the company uses units as the measure of activity in its budgets and performance reports. During June, the company budgeted for 5,800 units, but its actual level of activity was 5,760 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for June: Data used in budgeting: Revenue: $29.20 Variable element per unit Direct Labor $3.80 Variable element per unit Direct Materials: $9.90 Variable element per unit Manufacturing Overhead: $38,900 fixed element per month, $1.50 variable element per unit Selling and Administrative expenses: $24,500, $0.30 Variable element per unit Total Expenses: $63,400 fixed element per month, $15.50 variable element per unit Actual results for June: Revenue: $170.258 Direct Labor: $21,347 Direct Materials: $54,759 Manufacturing overhead: $47,430 Selling and Administrative Expenses: $26,268 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 June would be closest to:?

Trevorrow Corporation manufactures and sells a single product. the company uses units as the measure of activity in its budgets and performance reports. During June, the company budgeted for 5,800 units, but its actual level of activity was 5,760 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for June: Data used in budgeting: Revenue: $29.20 Variable element per unit Direct Labor $3.80 Variable element per unit Direct Materials: $9.90 Variable element per unit Manufacturing Overhead: $38,900 fixed element per month, $1.50 variable element per unit Selling and Administrative expenses: $24,500, $0.30 Variable element per unit Total Expenses: $63,400 fixed element per month, $15.50 variable element per unit Actual results for June: Revenue: $170.258 Direct Labor: $21,347 Direct Materials: $54,759 Manufacturing overhead: $47,430 Selling and Administrative Expenses: $26,268 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 June would be closest to:?

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 1CMA: Taylor Corporation is analyzing the cost behavior of three cost items, A, B, and C, to budget for...
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Trevorrow Corporation manufactures and sells a single product. the company uses units as the measure of activity in its budgets and performance reports. During June, the company budgeted for 5,800 units, but its actual level of activity was 5,760 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for June: Data used in budgeting: Revenue: $29.20 Variable element per unit Direct Labor $3.80 Variable element per unit Direct Materials: $9.90 Variable element per unit Manufacturing Overhead: $38,900 fixed element per month, $1.50 variable element per unit Selling and Administrative expenses: $24,500, $0.30 Variable element per unit Total Expenses: $63,400 fixed element per month, $15.50 variable element per unit Actual results for June: Revenue: $170.258 Direct Labor: $21,347 Direct Materials: $54,759 Manufacturing overhead: $47,430 Selling and Administrative Expenses: $26,268 The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on flexible budget performance report) June would be closest to: ?
Transcribed Image Text:Trevorrow Corporation manufactures and sells a single product. the company uses units as the measure of activity in its budgets and performance reports. During June, the company budgeted for 5,800 units, but its actual level of activity was 5,760 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for June: Data used in budgeting: Revenue: $29.20 Variable element per unit Direct Labor $3.80 Variable element per unit Direct Materials: $9.90 Variable element per unit Manufacturing Overhead: $38,900 fixed element per month, $1.50 variable element per unit Selling and Administrative expenses: $24,500, $0.30 Variable element per unit Total Expenses: $63,400 fixed element per month, $15.50 variable element per unit Actual results for June: Revenue: $170.258 Direct Labor: $21,347 Direct Materials: $54,759 Manufacturing overhead: $47,430 Selling and Administrative Expenses: $26,268 The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on flexible budget performance report) June would be closest to: ?
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