Solution-Find revenue variance in the Revenue and Spending

Find revenue variance in the Revenue and Spending Variances

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Reference no: EM132759110

Question - Lochner Corporation is an oil well service company that measures its output by the number of wells serviced. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for June.

Fixed Element per Month Variable Element per Well Serviced Actual Total for June

Revenue $5,600 $148,000

Employee salaries and wages $40,600 $1,200 $73,700

Servicing materials $500 $13,600

Other expenses $42,800 $43,300

When the company prepared its planning budget at the beginning of June, it assumed that 24 wells would have been serviced. However, 26 wells were actually serviced during June.

Required - Find the revenue variance in the Revenue and Spending Variances column of a report comparing actual results to the flexible budget for June?

Reference no: EM132759110

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Find revenue variance in the Revenue and Spending Variances

Reference no: EM132759110

Reference no: EM132759110

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