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Newspaper Delivery Co. delivers newspapers. In 2015, the company budgeted for 1,000 deliveries, but its actual level of activity was 1,200 deliveries. The company has

Newspaper Delivery Co. delivers newspapers. In 2015, the company budgeted for 1,000 deliveries, but its actual level of activity was 1,200 deliveries. The company has provided the following data concerning its budget and actual results for 2015. Assume that wages of a neighbor boy is a variable cost and bike rental is a fixed cost.

Static Budget Actual Results
Revenue $ 3,000 $ 3,500
Costs

Wages of a neighbor boy

1,000

1,300

Bike rental

200 175
Total Costs 1,200 1,475
Net Income 1,800 2,025

The revenue variance would be closest to:

$ 100 F

$ 100 U

$ 500 F

$ 600 F

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