The following information applies to questions 13-15. Friou Corporation manufact

Question

The following information applies to questions 13-15. Friou Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During July, the company budgeted for 6,300 units, but its actual level of activity was 6,250 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for July:

Data used in budgeting:




Fixed

element

per month


Variable

element

per unit

Revenue

Explanation / Answer

0 + 4.20 * 6,300
= 26,460............(answer)

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