1 Linscott Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During July, the company budgeted for 5,400 units, but its actual level of activity was 5,380 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for July: 5 points Data used in budgeting: Revenue Direct labor Direct materials Manufacturing overhead Selling and administrative expenses Total expenses Actual results for July: Fixed element per month Variable element per unit $36.60 $0 $5.30 0 11.30 42,800 1.90 29,900 0.10 $72,700 $18.60 Revenue Direct labor Direct materials Manufacturing overhead Selling and administrative expenses $206,318 $29,814 $58,224 $51,982 $29,458 The spending variance for direct materials in July would be closest to: $2,796 U $2,570 U $2,570 F $2,796 F Save