Vandall corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During April, the company budgeted for 7,300 units, but its actural level of activity was 7,340 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for April:

Data used in budgeting

Variable element per month Fixed element per month

$35.40 __________ Revenue

$3.30 0 Direct labor

15.90 0 Direct materials

1.20 49,200 Manufacturing overhead

0.10 $26,600 Selling & administrative expenses

$20.50 $75,800 Total expenses

Actual results for April:

Revenue $254,146

Direct labor $24,722

Direct materials $116,496

Manufacturing overhead $59,608

Selling and administrative expenses $26,494

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 April would be closest to

A.$6,144 U

B.$6,740 U

C.$6,740 F

D.$6,144 F

***Please SHOW HOW to get this