Lenci Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During May, the company budgeted for 5,100 units, but its actual level of activity was 5,050 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for May:Data used in budgeting: Actual results for May:
The revenue variance for May would be closest to:

A) $4,150 F
B) $2,170 F
C) $2,170 U
D) $4,150 U

Revenue variance = Actual revenue - Budgeted revenue
Actual revenue = Actual units sold * Selling price per unit = 5,050 units * $23 per unit = $116,150
Budgeted revenue = Budgeted units * Budgeted selling price per unit = 5,100 units * $23 per unit = $117,300
Revenue variance = $116,150 - $117,300 = -$1,150 (U)

Therefore, the revenue variance for May is $1,150 unfavorable or negative, which means actual revenue was lower than budgeted revenue. Choice C is the closest to this value, as it indicates a revenue variance of $2,170 unfavorable, which is the positive equivalent of a negative $2,170 variance.