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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,
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 6,800 units, but its actual level of activity was 6,750 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 Revenue Direct labor Direct materials Manufacturing overhead selling and administrative expenses Total expenses Fixed element per month 50 $0 0 38,000 25,600 $. 63,600 Variable element per unit $ 34.30 $6.30 13.90 1.80 0.30 $ 22.30 Actual results for May: Revenue Direct labor Direct materials Manufacturing overhead Selling and administrativo expenses $ 232,600 $ 41,890 $ 94,925 $ 44,000 $ 30,480 The direct materials in the flexible budget for May would be closest to Multiple Choice $94.520 $95.655 $95.10 $93,025
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