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, thecompany budgeted for 5,900 units, but its actual level of activity was 5,940 units. The company has provided the following data concerning the formulas used in itsbudgeting and its actual results for May:Data used in budgeting:Fixed elementVariable elementper monthper unitRevenue$ 0$ 0$ 32.60$ 3.90Direct laborDirect materials12.10Manufacturing overheadSelling and administrative expenses33,4001.8028,3000.40Total expenses$ 61,700$ 18.20Actual results for May:$ 200,564$ 22,786$ 73,824$ 43,922$ 31,896RevenueDirect laborDirect materialsManufacturing overheadSelling and administrative expensesThe spending variance for direct materials in May would be closest to: The spending variance for direct materials in May would be closest to:Multiple Choice$2,434 F$1,950 FO $2,434 U$1,950 U

Standard Actual results Particular Quantity Rate amount Quantity Rate…

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 5,900 units, but its actual level of activity was 5,940 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 $ 32.60 $ 3.90 Revenue $ 0 Direct labor Direct materials 12.10 Manufacturing overhead Selling and administrative expenses 33,400 1.80 28,300 0.40 Total expenses $ 61,700 $ 18.20 Actual results for May: $ 200,564 $ 22,786 $ 73,824 $ 43,922 $ 31,896 Revenue Direct labor Direct materials Manufacturing overhead Selling and administrative expenses The spending variance for direct materials in May would be closest to:

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 5,900 units, but its actual level of activity was 5,940 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 $ 32.60 $ 3.90 Revenue $ 0 Direct labor Direct materials 12.10 Manufacturing overhead Selling and administrative expenses 33,400 1.80 28,300 0.40 Total expenses $ 61,700 $ 18.20 Actual results for May: $ 200,564 $ 22,786 $ 73,824 $ 43,922 $ 31,896 Revenue Direct labor Direct materials Manufacturing overhead Selling and administrative expenses The spending variance for direct materials in May 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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