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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 7,400 units, but its actual level of activity was 7,350 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 Variable element month per unit $ $ Manufacturing overhead Selling and administrative expenses $ $ $ $ $ - 0 0 31,000 26,200 57,200 257,800 39,870 99,890 47,000 30,540 The activity variance for direct labor in May would be closest to: Multiple Choice $275 F $830 F $830 U $275 U $34.90 $ 5.50 13.40 2.40 0.20 $21.50

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 7,400 units, but its actual level of activity was 7,350 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 Variable element month per unit $ $ Manufacturing overhead Selling and administrative expenses $ $ $ $ $ - 0 0 31,000 26,200 57,200 257,800 39,870 99,890 47,000 30,540 The activity variance for direct labor in May would be closest to: Multiple Choice $275 F $830 F $830 U $275 U $34.90 $ 5.50 13.40 2.40 0.20 $21.50

FINANCIAL ACCOUNTING
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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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 7,400 units, but its actual level of activity was 7,350 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 $ $ Manufacturing overhead Selling and administrative expenses $ $ $ $ $ Variable element per unit 0 0 31,000 26,200 57,200 257,800 39,870 99,890 47,000 30,540 The activity variance for direct labor in May would be closest to: Multiple Choice $275 F $830 F $830 U $275 U $34.90 $ 5.50 13.40 2.40 0.20 $ 21.50
Transcribed Image Text: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 7,400 units, but its actual level of activity was 7,350 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 $ $ Manufacturing overhead Selling and administrative expenses $ $ $ $ $ Variable element per unit 0 0 31,000 26,200 57,200 257,800 39,870 99,890 47,000 30,540 The activity variance for direct labor in May would be closest to: Multiple Choice $275 F $830 F $830 U $275 U $34.90 $ 5.50 13.40 2.40 0.20 $ 21.50
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