Quiz Help Save& Exlt TB MC Qu. 9-219 Piechocki Corporation manufactures... Corpo

Question

Quiz Help Save& Exlt TB MC Qu. 9-219 Piechocki Corporation manufactures... 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 7,100 units, but its actual level of actvity was 7,050 units. The company has provided the followang data concerning the formulas used in its budgeting and its actual results for May Data used in budgeting: nth Revenue s 34.60 Direct labor Direct materials Manufacturing overhead Selling and administrative s 6.60 13.10 2.10 41,000 25,900 S 66,900 S 22.40 Total expenses Actual results for May S 46.320 LANI

Explanation / Answer

Direct Labor Activity Variance = (7,100 Units X $6.60) - (7,050 Units X $6.60) Direct Labor Activity Variance = $46,860 - $46,530 Direct Labor Activity Variance = $330 (F)

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