Wyzard Corporation is a shipping container refurbishment company that measures its output by the number of containers refurbished.
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Question

Wyzard Corporation is a shipping container refurbishment company that measures its output by the number of

containers refurbished. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for February.

 

 

Fixed Element per Month

Variable Element per Container Refurbished

Actual Total for February

 

Revenue

 

 

 

$

3,800

$

123,400

Employee salaries and wages

$

40,000

 

$

1,100

$

73,800

Refurbishing materials

 

 

 

$

700

$

21,800

Other expenses

$

29,700

 

 

 

$

28,800

 

-

 

When the company prepared its planning budget at the beginning of February, it assumed that 37 containers would have been refurbished. However, 32 containers were actually refurbished during February.

 

The revenue variance in the Revenue and Spending Variances column of a report comparing actual results to the flexible budget for February would have been closest to: please provide details


Select one:

a. $17,200 U

b. $1,800 F

c. $1,800 U

d. $17,200 F

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