--8. Born of Frustration Inc. makes one product. Budgeted unit sales for 1^stQuarter, 2^nd Quarter, 3^rd Quarter, and 4^th Quarter are 311,000; 314,000; 309,000; and 317,000 units, respectively. The ending finished goods inventory should equal 20% of the following month's sales. The budgeted required production for 2^nd Quarter is:

	a.	310,600 units
	b.	314,000 units
	c.	315,000 units
	d.	315,600 units
	e.	313,000 units

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LPM Ltd. uses units produced as its measure of activity. During August, the company budgeted for 48,900 units of output, but actually produced 46,700 units of output. The company uses the following revenue and cost formulas in its budgeting, where q is the number of units of output:

Revenue: $11.60q

Salaries: $31,050 + $2.45q

Supplies: $1.25q

Utilities: $0.60q

Insurance: $23,090

Miscellaneous expenses: $13,800 + $0.21q

The company reported the following actual results for August:

Revenue	$	611,250
Salaries	$	148,360
Supplies	$	55,795
Utilities	$	31,920
Insurance	$	22,100
Miscellaneous expense	$	20,845

The revenue variance in August is:

	a.	$69,530 U
	b.	$25,520 F
	c.	$44,010 U
	d.	$44,010 F
	e.	$69,530 F