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 8,200 units, but its actual level of activity was 8,250 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 tenant-day
Revenue %u2014 $35.70
Direct labor $0 $6.30
Direct materials 0 12.00
Manufacturing overhead 39,000 2.00
Selling and administrative expenses 27,000 0.30
Total expenses
$66,000
$20.60
Actual results for October:
Revenue $293,200
Direct labor $51,220
Direct materials $92,340
Manufacturing overhead $51,000
Selling and administrative expenses $30,620
The revenue variance in October would be closest to:.
a. $460 F
b. $1,325 F
c. $460 U
d. $1,325 U