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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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