Piechocki Corporation manufactures and sells a single product- The com.pdf
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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 7,400 units, but its actual level of activity was 7,350 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: Actual results for May: The revenue variance for May would be closest to: Multiple Choice $460 F $1,285 F $1,285 U $460 U Fixed element per month Variable element per unit Revenue $ 0 $ 34.90 Direct labor $ 0 $ 5.50 Direct materials 0 13.40 Manufacturing overhead 31,000 2.40 Selling and administrative expenses 26,200 0.20 Total expenses $ 57,200 $ 21.50.
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