Diskind Corporation manufactures and sells a single product. The company uses un
ID: 2654669 • Letter: D
Question
Diskind Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 7,600 units, but its actual level of activity was 7,550 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October:
Data used in budgeting:
26,400
4.00
$ 59,400
$25.40
Actual results for October:
The spending variance for direct materials in October would be closest to:
$430 F
$430 U
$1,085 U
$1,085 F
Diskind Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 7,600 units, but its actual level of activity was 7,550 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October:
Explanation / Answer
Direct Material Spending Variance
Budgeted Cost- Actual Cost
7600*13.10-99990
= $ 430 F