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 7,300 units, but its actual level of activity was 7,250 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 Actual results for May: Revenue Direct labor Direct materials. Fixed element per month 30,000 26,100 $ 56,100 $ 253,600 $ 48,970 $ 98,250 $ 46,500 $ 30,530 $0 $0 0 Manufacturing overhead Selling and administrative expenses The direct labor in the planning budget for May would be closest to: Variable element per unit. $34.80 $ 6.80 13.30 2.30 0.80 $ 23.20

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 7,300 units, but its actual level of activity was 7,250 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 Actual results for May: Revenue Direct labor Direct materials. Fixed element per month 30,000 26,100 $ 56,100 $ 253,600 $ 48,970 $ 98,250 $ 46,500 $ 30,530 $0 $0 0 Manufacturing overhead Selling and administrative expenses The direct labor in the planning budget for May would be closest to: Variable element per unit. $34.80 $ 6.80 13.30 2.30 0.80 $ 23.20

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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