Diskind Corporation manufactures and sells a single product. The company uses un
ID: 2654673 • 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 7,900 units, but its actual level of activity was 7,850 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:
$62,700
$20.90
Actual results for October:
The direct labor in the planning budget for October would be closest to:
$47,100
$47,370
$47,230
$47,400
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 7,900 units, but its actual level of activity was 7,850 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October:
Explanation / Answer
Direct labour in the Planning Budget
= Fixed Labour+ Variable planned Labour
= 0+6*7900
= $ 47400
The correct answer is $ 47400