Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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,
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 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: Fixed Variable element element per per month unit - $35.40 Revenue Direct labor Direct materials Manufacturing overhead Selling and administrative expenses Total expenses $ 0 0 36,000 26,700 $62,700 $ 6.00 12.50 1.70 0.70 $20.90 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 direct labor in the planning budget for May would be closest to: Multiple Choice $47,370 $47,230 $47100 $47100 $47,400
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started