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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 7,300 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

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter9: Profit Planning And Flexible Budgets
Section: Chapter Questions
Problem 48BEB: Performance Report Based on Budgeted and Actual Levels of Production Balboa Company budgeted...
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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 7,300 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 $0 $ 0 0 30,000 26,100 $ 56,100 $ 253,600 $ 48,970 $ 98,250 $ 46,500 $ 30,530 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
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 7,300 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 $0 $ 0 0 30,000 26,100 $ 56,100 $ 253,600 $ 48,970 $ 98,250 $ 46,500 $ 30,530 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
Multiple Choice O O $49,610 $48,970 $49,300 $49,640
Transcribed Image Text:Multiple Choice O O $49,610 $48,970 $49,300 $49,640
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