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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,

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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 7000 units, but its actual level of activity was 6,950 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 $34.50 Revenue Direct labor Direct materials Manufacturing overhead Selling and administrative expenses Total expenses 0 0 40,000 25,800 $65,800 $ 6.50 14.10 2.00 0.50 $23.10 Actual results for May Revenue $241,350 Direct labor $ 45,210 Direct materials $ 99,030 Manufacturing overhead $ 45,000 Selling and administrative expenses $ 30,500 The spending variance for direct materials in May would be closest to: A report prepared by a government official comparing actual costs to budgeted costs for the blood bank appears below. Continued support from the government depends on the blood bank's ability to demonstrate control over its costs. St. Lucia Blood Bank Cost Control Report For the Month Ended September 30 Actual Planning Resulta Budget Variances Liters of blood collected 610 490 Medical supplies $ 7,203 $ 5,880 $ 1,323 U Lab tests 5,081 4,900 181 v Equipment depreciation 2,905 2,600 305 U Rent 1,050 1,050 0 Utilities 597 525 72 0 Administration 11,525 11,030 495 U Total expense $ 28,361 $ 25,985 $ 2,376 U The government official who prepared the report countered that all of the figures had been submitted by the blood bank to the government, he was just pointing out that actual costs were a lot higher than promised in the budget. The following cost formulas were used to construct the planning budget: Medical supplies Lab tests Equipment depreciation Rent Utilities Administration Cost Formulas $12.00 $10.000 $2,600 $1,050 $525 $10,050 + $2.009 Required: 1. Complete the flexible budget performance report for September. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) St. Lucia Blood Bank Flavihla Rudaat Parformance Ranort

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