Piechocki Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets andperformance reports. During May, the company budgeted for 7,900 units, but its actual level of activity was 7,850 units. The company hasprovided the following data concerning the formulas used in its budgeting and its actual results for May:Data used in budgeting:Fixed element Variable element perper monthunitRevenue$ eI$ 35.40$ 6.00Direct laborDirect materials12.50Manufacturing overhead1.7036,00026,700Selling and administrative expenses0.70Total expenses$ 62,700$ 20.90Actual results for May:$ 278,900$ 47,230$ 101,105$ 49,500$ 30,590RevenueDirect laborDirect materialsManufacturing overheadSelling and administrative expensesThe direct labor in the planning budget for May would be closest to:

Planning budget captures the budgeted estimates made in advance to predict for the coming month.

Answered: Piechocki Corporation manufactures and…

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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