Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
Plechocki Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During May,
Plechocki 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 6,900 units, but its actual level of activity was 6,850 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 element per month Variable element per unit $34.40 Revenue Direct labor Direct materials Manufacturing overhead Selling and administrative expenses Total expenses $ 0 0 39,000 25, 700 $64,700 $ 6.40 14.00 1.90 4.00 $26.30 Actual results for May Revenue $ 236,700 Direct labor $ 43,370 Direct materials $ 96,930 Manufacturing overhead $ 44,500 Selling and administrative expenses $ 30,490 The direct materials in the flexible budget for May would be closest to: Multiple Choice $96,600 $97185 $97,660 3 3 $95.900 4 4 43
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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