Recycle and Renew Corporation is a shipping container refurb…
Recycle and Renew Corporation is a shipping container refurbishment company that measures its output by the number of containers refurbished. Recycle and Renew has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for May. Fixed Element per Month Variable Element per Container Refurbished Actual Total for May Revenue $3,800 $123,400 Employee salaries and wages $40,000 $1,100 $ 73,800 Refurbishing materials $ 700 $ 21,800 Other expenses $29,700 $ 28,800 When the company prepared its planning budget at the beginning of May, it assumed that 37 containers would have been refurbished. However, 32 containers were actually refurbished during May. The revenue variance in the Revenue and Spending Variances column of a report comparing actual results to the flexible budget for May would have been closest to: