Butterfly Inc uses the number of museumi visits as its measure of activity

Accounting Jan 13, 2021

Butterfly Inc uses the number of museumi visits as its measure of activity. During May, the company budgeted for 5. 150 museum visits, but its actual level of activity was 5,300 museum visits Revenge es variable and is $30 per museum visit. Actual revenue for May was 5161,000. The revenue variance for May would be dosest to A $2,000 favorable B12,000 unfavorable O $6.500 favorable D. 16,500 unfavorable

Expert Solution

BQ = 5150 visits

AQ = 5300 visits

BP = 30 per visit

Revenue variance = (AQ * AP) - (BQ * BP) = 161000 - (5150*30) = 161000 - 154500 = 6500 F

Answer = C. $6,500 F

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