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A&B Co. provides house cleaning services. The company uses the number of jobs to measure activity. At the beginning of April, the company budgeted for

A&B Co. provides house cleaning services. The company uses the number of jobs to measure activity. At the beginning of April, the company budgeted for 80 jobs, but the actual number of jobs turned out to be 90. A report comparing the budgeted revenues and costs to the actual revenues and costs appears below:

A&B Co.

For the Month Ended April 30

Revenue/Cost

Formulas

Actual

Results

Planning

Budget

Number of jobs (Q)

90

80

Revenue

$100Q

8,900

8,000

Expenses:

Variable expenses

?

3,800

3,200

Fixed expense

?

2,100

2,500

Total expenses

5,900

5,700

Net operating income

3,000

2,300

What is the amount of revenue variance in A&Bs performance report for April?

A.

$100 favorable

B.

$900 unfavorable

C.

$900 favorable

D.

$100 unfavorable

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