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Lenci 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 5,240 units, but its actual level of activity was 5,190 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 Variable element per month per unit 41.00 Revenue Direct labor Direct materials %24 6.90 17.10 Manufacturing overhead Selling and administrative 42,900 2.70 24,100 1.60 expenses Total expenses %24 67,000 24 28.30 Actual results for May $199,210 $ 29,965 $ 81,665 $ 56,005 $ 24,080 Revenue Direct labor Direct materials Manufacturing overhead Selling and administrative expenses The spending variance for manufacturing overhead in May would be closest to:

Lenci 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 5,240 units, but its actual level of activity was 5,190 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 Variable element per month per unit 41.00 Revenue Direct labor Direct materials %24 6.90 17.10 Manufacturing overhead Selling and administrative 42,900 2.70 24,100 1.60 expenses Total expenses %24 67,000 24 28.30 Actual results for May $199,210 $ 29,965 $ 81,665 $ 56,005 $ 24,080 Revenue Direct labor Direct materials Manufacturing overhead Selling and administrative expenses The spending variance for manufacturing overhead in May would be closest to:

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Actual results for May Revenue $199,210 $ 29,965 $ 81,665 $ 56,005 $ 24,080 Direct labor Direct materials Manufacturing overhead Selling and administrative expenses The spending variance for manufacturing overhead in May would be closest to: Multiple Choice $908 U $1,043 U $1,043 F $908 F O O
Transcribed Image Text:Actual results for May Revenue $199,210 $ 29,965 $ 81,665 $ 56,005 $ 24,080 Direct labor Direct materials Manufacturing overhead Selling and administrative expenses The spending variance for manufacturing overhead in May would be closest to: Multiple Choice $908 U $1,043 U $1,043 F $908 F O O
Lenci 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 5,240 units, but its actual level of activity was 5,190 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 Variable element per month per unit $4 Revenue 41.00 Direct labor 24 $ 6.90 Direct materials 17.10 Manufacturing overhead Selling and administrative 42,900 2.70 24, 100 1.60 expenses Total expenses $4 67,000 $4 28.30 Actual results for May Revenue $199,210 $ 29,965 $ 81,665 $ 56,005 $ 24,080 Direct labor Direct materials Manufacturing overhead Selling and administrative expenses The spending variance for manufacturing overhead in May would be closest to: Multinle Choice
Transcribed Image Text:Lenci 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 5,240 units, but its actual level of activity was 5,190 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 Variable element per month per unit $4 Revenue 41.00 Direct labor 24 $ 6.90 Direct materials 17.10 Manufacturing overhead Selling and administrative 42,900 2.70 24, 100 1.60 expenses Total expenses $4 67,000 $4 28.30 Actual results for May Revenue $199,210 $ 29,965 $ 81,665 $ 56,005 $ 24,080 Direct labor Direct materials Manufacturing overhead Selling and administrative expenses The spending variance for manufacturing overhead in May would be closest to: Multinle Choice
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