Diskind Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 7,100 units, but its actual level of activity was 7,050 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October: Data used in budgeting:
Fixed element per month Variable element per unit
Revenue â $34.60
Direct labor $0 $6.60
Direct materials 0 13.10
Manufacturing overhead 41,000 2.10
Selling and administrative expenses 25,900 0.60
Total expenses $66,900 $22.40
Actual results for October:
Revenue $244,930
Direct labor $46,320
Direct materials $93,535
Manufacturing overhead $45,500
Selling and administrative expenses $30,510
The revenue variance in October would be closest to:.
a. $1,000 F
b. $730 U
c. $730 F
d. $1,000 U