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 8,300 units, but its actual level of activity was 8,350 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 element per month	Variable element per unit
Revenue	$ 0	$ 35.80
Direct labor	$ 0	$ 6.40
Direct materials	0	12.10
Manufacturing overhead	40,000	2.10
Selling and administrative expenses	27,100	4.00
Total expenses	$ 67,100	$ 24.60

Actual results for May:

Revenue	$ 297,500
Direct labor	$ 52,870
Direct materials	$ 99,580
Manufacturing overhead	$ 51,500
Selling and administrative expenses	$ 30,630

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

rev: 06_30_2020_QC_CS-208650

Multiple Choice

$850 F

$850 U

$1,455 F

$1,455 U

NEED ASAP