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 6,400 units, but its actual level of activity was 6,350 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 direct materials in the flexible budget for May would be closest to:
A) $85,725
B) $87,630
C) $86,400
D) $87,010

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 6,400 units, but its actual level of activity was 6,350 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 direct materials in the flexible budget for May would be closest to:
A) $85,725 
B) $87,630 
C) $86,400 
D) $87,010

Quizplus · Accepted Answer

The Answer of 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 6,400 units, but its actual level of activity was 6,350 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 direct materials in the flexible budget for May would be closest to:
A) $85,725 
B) $87,630 
C) $86,400 
D) $87,010

Piechocki Corporation Manufactures and Sells a Single Product