Piechocki Corporation manufactures and sells a single product. The company uses

Question

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 6,900 units, but its actual level of activity was 6,850 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 Fixed Variable element element per per month unit $34.40 Revenue Direct labor Direct materials Manufacturing overhead Selling and administrative expenses Total expenses 39,000 25,700 $64,700 6.40 14.00 1.90 4.00 $26.30 Actual results for May: Revenue Direct labor Direct materials Manufacturing overhead $236,700 $ 43,370 $ 96,930 $44,500

Explanation / Answer

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

Direct labor in planning budget = 6900 * 6.4    = $44,160

Answer - $44,160

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---