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 5,600 units, but its actual level of activity was 5,560 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	$ 0	$ 29.00
Direct labor	$ 0	$ 3.60
Direct materials	0	9.70
Manufacturing overhead	38,700	1.30
Selling and administrative expenses	24,300	0.40
Total expenses	$ 63,000	$ 15.00

Actual results for June:

Revenue	$ 165,382
Direct labor	$ 19,481
Direct materials	$ 51,677
Manufacturing overhead	$ 45,828
Selling and administrative expenses	$ 26,554

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

$6,442 F

$7,002 F

$7,002 U

$6,442 U