Tabeling Corporation Manufactures and Sells a Single Product

Multiple Choice

Tabeling Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During August, the company budgeted for 6,500 units, but its actual level of activity was 6,540 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for August: Data used in budgeting: Actual results for August: The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the revenue and spending variances report) for August would be closest to:

A) $10,362 F
B) $10,362 U
C) $10,970 F
D) $10,970 U