Answered step by step
Verified Expert Solution
Link Copied!

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 7,300 units, but its actual level of activity was 7,250 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 - $ 34.80
Direct labor $ 0 $ 6.80
Direct materials 0 13.30
Manufacturing overhead 30,000 2.30
Selling and administrative expenses 26,100 0.80
Total expenses $ 56,100 $ 23.20

Actual results for May:

Revenue $ 253,600
Direct labor $ 48,970
Direct materials $ 98,250
Manufacturing overhead $ 46,500
Selling and administrative expenses $ 30,530

The revenue variance for May would be closest to:

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporate Financial Reporting And Analysis

Authors: David Young, Jacob Cohen

3rd Edition

1118470559, 9781118470558

More Books

Students also viewed these Accounting questions

Question

Discuss the role of price as an indicator of quality to consumers.

Answered: 1 week ago