1.Questions 1, 2, 3 and 4 relate to the following information. Pollica Corporati
ID: 2435217 • Letter: 1
Question
1.Questions 1, 2, 3 and 4 relate to the following information. Pollica Corporation's cost formula for its selling and administrative expense is $11,400 per month plus $94 per unit. For the month of March, the company planned for activity of 5,700 units, but the actual level of activity was 5,660 units. The actual selling and administrative expense for the month was $522,860.A) $522,860
B) $547,200
C) $543,440
D) $526,555
2.
Referring to the information in question 1, the selling and administrative expense in the flexible budget for March would be closest to:
A) $547,200
B) $522,860
C) $543,360
D) $543,440
3.
Referring to the information in question # 1, the activity variance for selling and administrative expense in March would be closest to:
A) $24,340 F
B) $24,340 U
C) $3,760 U
D) $3,760 F
4.
Referring to the information in question # 1, the spending variance for selling and administrative expense in March would be closest to:
A) $20,580 F
B) $24,340 U
C) $24,340 F
D) $20,580 U
Explanation / Answer
Pollica Corporation's cost formula for its selling and administrative expense is $11,400 per month plus $94 per unit. For the month of March, the company planned for activity of 5,700 units, but the actual level of activity was 5,660 units. The actual selling and administrative expense for the month was $522,860. A) $522,860 2. Referring to the information in question 1, the selling and administrative expense in the flexible budget for March would be closest to: A) $547,200 3. Referring to the information in question # 1, the activity variance for selling and administrative expense in March would be closest to: A) $24,340 F 4. Referring to the information in question # 1, the spending variance for selling and administrative expense in March would be closest to: A) $20,580 F
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