Question

Nashville Corporation has provided the following information for June 2018:

	Fixed Element	Variable Element	Actual Totals
	Per Month	Per Unit Sold	for February
Revenue		$40	$410,000
Wages	$100,000	$5	$140,000
Office expense		$20	$175,000
Other expense	$40,000		$48,000

Nashville Corporation planned on selling 10,000 units in June, however, actual units sales totaled 11,000 units.

The activity variance for revenue is _______ .

The activity variance for total expenses is _______ .

The activity variance for net operating income is _______ .

You must enter your answers in the following formats:

For favorable variances: $x,xxx F

For unfavorable variances: $x,xxx U

Answer 1

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						Actual	Activity Variance	F/U
		Fixed	Variable	Formula	Budgeted
	Units Sold				10000	11000
	Revenue		40	40*Units Sold	400000	440000	40000	F
	Wages	100000	5	100000+(5*Unit Sold)	150000	155000	5000	U
	Office Expense		20	20*Units Sold	200000	220000	20000	U
	Other Expense	40000		40000	40000	40000	0
	Total Expense				390000	415000	25000	U
	Net Income				10000	25000	15000	F