Beta company makes and sells wadgets. Before the start of 2018, Alpha budgeted to produce and sell 24,000 wadgets. However, the company actually ended up producing and selling 27,400 wadgets in 2018. Beta budgeted to sell each wadget for $18, but the actual average selling price for each wadget was $21.50. For variable costs, beta budgeted that each wadget would use $3 of direct material costs, but the actual direct material cost was $2.50 per wadget. Please answer the following questions:

1. What will total sales be in the Flex Budget? (do not use commas)

Use the same information as in Question 1

2. What will total direct material costs be in the Flex Budget?

Use the same information as in Question 1

3. What is the revenue variance (or in other words, the flex budget variance for revenue)? (enter the number itself, not the F or U)

4. For the revenue variance you found in Question 3, was the variance Favorable or Unfavorable?