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 7,900 units, but its actual level of activity was 7,850 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 per month unit Revenue $ e I$ 35.40 $ 6.00 Direct labor Direct materials 12.50 Manufacturing overhead 1.70 36,000 26,700 Selling and administrative expenses 0.70 Total expenses $ 62,700 $ 20.90 Actual results for May: $ 278,900 $ 47,230 $ 101,105 $ 49,500 $ 30,590 Revenue Direct labor Direct materials Manufacturing overhead Selling and administrative expenses The direct labor in the planning budget for 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 7,900 units, but its actual level of activity was 7,850 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 per month unit Revenue $ e I$ 35.40 $ 6.00 Direct labor Direct materials 12.50 Manufacturing overhead 1.70 36,000 26,700 Selling and administrative expenses 0.70 Total expenses $ 62,700 $ 20.90 Actual results for May: $ 278,900 $ 47,230 $ 101,105 $ 49,500 $ 30,590 Revenue Direct labor Direct materials Manufacturing overhead Selling and administrative expenses The direct labor in the planning budget for May would be closest to:
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 4PB
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