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Piechocki Corporation manufactures and sellis a single product. The company uses units as the measure of activity in its budgets and performance reports. During May,
Piechocki Corporation manufactures and sellis a single product. The company uses units as the measure of activity in its budgets and performance reports. During May, the company budgeted for 7,900 units, but its actual level of activity was 7,850 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 33 Fixed element per month $ @ $ 0 Revenue Direct labor Direct materials Manufacturing overhead Selling and administrative expenses Total expenses Variable element per unit $ 35.40 $ 6.00 12.50 1.70 0.70 $ 20.90 36,000 26,700 $ 62,700 Actual results for May Revenue $ 278,900 Direct labor $ 47,230 Direct materials $ 101,105 Manufacturing overhead $ 49,500 Selling and administrative expenses $ 30,590 The activity variance for direct labor in May would be closest to
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