Katsu,IncHas a Small Car Division That Operates as a Profit

Multiple Choice

Katsu,Inc.has a small car division that operates as a profit center.Below is a partially completed responsibility report for the first quarter. $$\begin{array}{l}\text { Responsibility Report }\\\begin{array} { | c | c | c | c | c | c | c | } \hline & \text { Actual } & \begin{array} { c } \text { F1exible } \\\text { Budget }\end{array} & \begin{array} { c } \text { Flexible } \\\text { Budget } \\\text { Variance }\end{array} & \text { U/F } & \begin{array} { c } \text { Percentage } \\\text { Variance }\end{array} & \text { U/F } \\\hline \begin{array} { c } \text { Sales } \\\text { Revenue }\end{array} & \$ 688,000 & \$ 700,000 & & & & \\\hline \begin{array} { c } \text { Variable } \\\text { Expenses }\end{array} & \underline { 309,000 } & \underline { 322,000 } & & & & \\\hline \begin{array} { c } \text { Contribution } \\\text { Margin }\end{array} & 379,000 & 378,000 & & & & \\\hline \begin{array} { c } \text { Traceable } \\\text { Fixed }\end{array} & & & & & & \\\text { Expenses } & \underline { 372,000 } & \underline { 369,000 } & & & & \\\hline \begin{array} { c } \text { Division } \\\text { Margin }\end{array} & \underline { \$ 7000 } & \underline { \$ 9000 } & & & & \\\hline\end{array}\end{array}$$
Compute the percentage variance for the flexible budget variance for sales revenue.(Round your answer to two decimal places.)

A) 1.71% F
B) 1.71% U
C) 4.04% U
D) 4.04% F