ABC Company's performance report for April included the following for sales revenue: Budgeted revenue = $98,000; Actual revenue = $93,000; Variance = $. Use F or U to identify the variance as favorable or unfavorable: .
Question
ABC Company's performance report for April included the following for sales revenue: Budgeted revenue = 93,000; Variance = $. Use F or U to identify the variance as favorable or unfavorable: .
Solution
To determine whether the variance is favorable (F) or unfavorable (U), we need to compare the actual revenue to the budgeted revenue.
Step 1: Identify the budgeted and actual revenues. From the question, we know that the budgeted revenue is 93,000.
Step 2: Subtract the actual revenue from the budgeted revenue. If the result is positive, the variance is favorable (F). If the result is negative, the variance is unfavorable (U).
Step 3: Calculate the variance. 93,000 (actual revenue) = $5,000.
Step 4: Determine if the variance is favorable or unfavorable. Since the result is positive, the variance is unfavorable (U). This is because the company made less revenue than it had budgeted for.
Similar Questions
ABC Company's performance report for April included the following for direct labor: Budgeted cost = $33,500; Actual cost = $32,200; Variance = $. Use F or U to identify the variance as favorable or unfavorable: .
ABC Company's production budget for April included the following for raw materials: Budgeted production = 35,000 units; Budgeted raw materials unit cost = $16 per unit. ABC Company's actual production for April was the following: Actual production = 36,000 units; Actual raw materials cost = $16.20 per unit.Calculate the following items for ABC's April performance report for raw materials:Original budget = $.Flexed budget = $.Actual cost = $.Variance = $.Use F or U to identify the variance as Favorable or Unfavorable.
ABC Company's production budget for April included the following for direct labor: Budgeted production = 15,000 units; Budgeted direct labor unit cost = $24 per unit. ABC Company's actual production for April was the following: Actual production = 16,000 units; Actual direct labor cost = $25.00 per unit.Calculate the following items for ABC's April performance report for direct labor:Original budget = $.Flexed budget = $.
ABC Company's production budget for March is 32,000 units. Budgeted fixed overhead is $64,000. ABC's standard fixed overhead application rate is $2 per machine hour and each unit is allowed a standard of 1 hour of machine time. Actual fixed overhead for March is $67,000. Actual production in March is 36,000 units.Calculate the fixed overhead volume variance for March:Fixed overhead volume variance = $.Use F or U to identify the variance as Favorable or Unfavorable: .
ABC Company's production budget for October is based on 500 units. Standard unit cost for variable overhead is $25 per unit ($5 per hour x 5 hours per unit). ABC's actual production in October = 525 units. The actual cost of variable overhead = $18,900 ($6 per hour x 6 hours per unit).Calculate the variable overhead spending variance for October:Variable overhead spending variance = $.Use F or U to identify the variance as Favorable or Unfavorable: .
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.