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LPM Ltd. uses units produced as its measure of activity. During August, the company budgeted for 48,900 units of output, but actually produced 46,700 units
LPM Ltd. uses units produced as its measure of activity. During August, the company budgeted for 48,900 units of output, but actually produced 46,700 units of output. The company uses the following revenue and cost formulas in its budgeting, where q is the number of units of output Revenue: $11.600 Salaries: $31,050 + $2.459 Supplies: $1.259 Utilities: 50.600 Insurance: $23,090 Miscellaneous expenses: $13,800 + 50.219 The company reported the following actual results for August: Revenue 5611,250 Salaries $148,360 Supplies $ 55,795 Utilities $ 31,920 Insurance $ 22,100 Miscellaneous expenses 20,845 The spending variance in August for 'Supplies' is: S2,580 F S5,330 S2,750 d. 52,750 F . 55,330 U Someone's Got It In For Me Corp's relevant range of activity is 55,000 units to 65,000 units. When it produces and sells 64,000 units, its costs per unit are as follows: Per unit cost: Direct materials $1.80 55.90 Direct labor Variable manufacturing overhead $1.20 Fixed manufacturing overhead Variable selling and administrative costs Fixed selling and administrative costs 51.30 If 60,000 units are produced, the total manufacturing cost is closest to: .5780,000 b.5768,000 $636,000 5678,400 e. 5642,800
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