Diskind Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 6,500 units, but its actual level of activity was 6,450 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October:

Data used in budgeting:

	Fixed element per month	Variable element per unit
Revenue		$34.00
Direct labor	$0	$6.00
Direct materials	0	13.60
Manufacturing overhead	35,000	1.50
Selling and administrative expenses	25,300	.70
Total expenses	$ 60,300	$21.80

Actual results for October:

Revenue	$220,100
Direct labor	$38,580
Direct materials	$88,900
Manufacturing overhead	$42,500
Selling and administrative expenses	$30,450

The spending variance for direct materials in October would be closest to:

	$500 U
	$1,180 U
	$500 F
	$1,180 F
Sarter Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year.

	Beginning Inventory	Ending Inventory
Finished goods (units)	24,000	74,000
Raw material (grams)	54,000	44,000

Each unit of finished goods requires 2 grams of raw material.

If the company plans to sell 590,000 units during the year, the number of units it would have to manufacture during the year would be:

	664,000 units
	590,000 units
	640,000 units
	536,000 units
Roye Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During September, Kennel budgeted for 5,200 tenant-days, but its actual level of activity was 5,230 tenant-days. Kennel has provided the following data concerning the formulas used in its budgeting and its actual results for September:

Data used in budgeting:

	Fixed element per month	Variable element per tenant-day
Revenue