Business, 11.08.2021 17:20 unknown6669

Piechoki corporation manufactures and sells a single product. the company uses units as the measure of activity. during may the company budgeted for 7100 units but the level of activity was 7050 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 Fixed element per month Variable element per unit
Revenue 0 $34.80
Direct labor $0 $6.80
Direct materials 0 13.30
Manufacturing overhead 30.000 2.30
Selling and administrative expenses 26,100 0.80
Total expenses 56,100 23.20

Actual results for October:

Revenue $253,600
Direct labor $48,970
Direct materials $98,250
Manufacturing overhead $46,500
Selling and administrative expenses $30,530

The activity variance for direct labor in October would be closest to:

a. $340 F
b. $670 U
c. $340 U
d. $670 F

Answers: 1

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