Manter Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During June, the company budgeted for 6,900 units, but its actual level of activity was 6,940 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for June: Data used in budgeting: Fixed element Variable element per month per unit $ 32.10 $ 5.00 Revenue $ 0 Direct labor Direct materials 13.60 Manufacturing overhead Selling and administrative expenses Total expenses 31,500 1.20 23,700 0.70 $ 55, 200 $ 20.50 Actual results for June: $ 219,604 $ 34,990 $ 94,364 $ 39,668 $ 29,888 Revenue Direct labor Direct materials Manufacturing overhead Selling and administrative expenses The spending variance for direct materials in June would be closest to:

Manter Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During June, the company budgeted for 6,900 units, but its actual level of activity was 6,940 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for June: Data used in budgeting: Fixed element Variable element per month per unit $ 32.10 $ 5.00 Revenue $ 0 Direct labor Direct materials 13.60 Manufacturing overhead Selling and administrative expenses Total expenses 31,500 1.20 23,700 0.70 $ 55, 200 $ 20.50 Actual results for June: $ 219,604 $ 34,990 $ 94,364 $ 39,668 $ 29,888 Revenue Direct labor Direct materials Manufacturing overhead Selling and administrative expenses The spending variance for direct materials in June would be closest to:

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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