Vandall corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During April, the company budgeted for 7,300 units, but its actural level of activity was 7,340 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for April:
Data used in budgeting
Variable element per month Fixed element per month
$35.40 __________ Revenue
$3.30 0 Direct labor
15.90 0 Direct materials
1.20 49,200 Manufacturing overhead
0.10 $26,600 Selling & administrative expenses
$20.50 $75,800 Total expenses
Actual results for April:
Revenue $254,146
Direct labor $24,722
Direct materials $116,496
Manufacturing overhead $59,608
Selling and administrative expenses $26,494
The overall revenue and spending variance (i.e. the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for April would be closest to
A.$6,144 U
B.$6,740 U
C.$6,740 F
D.$6,144 F