2.

Piechocki 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 6,100 units, but its actual level of activity was 6,050 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: Fixed Variable element element per per month unit $33.60 Revenue Direct labor Direct materials Manufacturing overhead Selling and administrative expenses Total expenses $ 0 0 31,000 24,900 $55,900 $ 5.60 13.20 1.10 0.30 $20.20 Actual results for May: Revenue $ 204,100 Direct labor $ 33, 360 Direct materials $ 81,200 Manufacturing overhead $ 40,500 Selling and administrative expenses $ 30,410 The direct materials in the flexible budget for May would be closest to: Tennies Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 3,500 client-visits, but its actual level of activity was 3,490 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for November: Data used in budgeting: Fixed Variable element element per per month client-visit $35.80 Revenue Personnel expenses Medical supplies Occupancy expenses Administrative expenses Total expenses $29,900 1,400 8,000 6,300 $ 45,600 $10.80 6.20 2.30 0.40 $19.70 Actual results for November: Revenue $ 125, 117 Personnel expenses $ 67,564 Medical supplies $ 23,840 Occupancy expenses $ 15,543 Administrative expenses $ 7,479 The spending variance for medical supplies in November would be closest to: Multiple Choice $802 F O $802 U $802 U $740 U $740 F