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19 - Hallet Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports.
19 - Hallet 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 5,800 units, but its actual level of activity was 5,830 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for May: Variable Fixed element Data used in budgeting: clement per per month unit Revenue $32.30 Direct labor 0 Direct materials 0 Manufacturing overhead 46,700 Selling and administrative expenses 26,200 Total expenses $72,900 S 3.40 10.40 1.10 0.80 S 15.70 Actual results for May: Revenue $191,229 Direct labor 19,872 Direct materials 60,622 Manufacturing overhead 50,523 Selling and administrative expenses 30,654 The net operating income in the planning budget for May would be closest to: A) $23,380 B) $23,878 C) $29,711 D) $29,406
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