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Piechocki Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During May,

Piechocki Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During May, the company budgeted for 8,400 units, but its actual level of activity was 8,450 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for May:

Data used in budgeting:

Fixed element per month Variable element per unit
Revenue - $ 35.90
Direct labor $ 0 $ 6.50
Direct materials 0 11.90
Manufacturing overhead 41,000 2.20
Selling and administrative expenses 27,200 0.50
Total expenses $ 68,200 $ 21.10

Actual results for May:

Revenue $ 302,100
Direct labor $ 54,310
Direct materials $ 99,230
Manufacturing overhead $ 52,000
Selling and administrative expenses $ 30,640

The revenue variance for May would be closest to:

Multiple Choice

$540 U

$1,255 F

$1,255 U

$540 F

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