Trevorrow Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During June, the company budgeted for 6,500 units, but its actual level of activity was 6,460 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for June: Data used in budgeting: Fixed element per month Variable element per unit Revenue - $ 27.90 Direct labor $ 0 $ 3.40 Direct materials 0 10.20 Manufacturing overhead 37,500 1.40 Selling and administrative expenses 23,100 0.40 Total expenses $ 60,600 $ 15.40 Actual results for June: Revenue $ 187,340 Direct labor $ 21,465 Direct materials $ 63,697 Manufacturing overhead $ 46,449 Selling and administrative expenses $ 25,739 The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for June would be closest to:

Multiple Choice

• $9,840 F

• $9,340 U

• $9,840 U

• $9,340 F