Armati, Inc., is looking for feedback on company performance. The company compares the budget for the year with the actual costs. Data have been collected below: Armati, Inc., had the following budgeted data:
The following actually occurred:
The budgeted cost for direct labour for 2004 was

A) £1,200.
B) £1,300.
C) £4,800.
D) £5,200.

Question

Armati, Inc., is looking for feedback on company performance. The company compares the budget for the year with the actual costs. Data have been collected below: Armati, Inc., had the following budgeted data:
The following actually occurred:
 The budgeted cost for direct labour for 2004 was

A) £1,200. 
B) £1,300. 
C) £4,800. 
D) £5,200.

Quizplus · Accepted Answer

According to the given data, the actual cost for direct labour in 2004 was £5,500, which is higher than the budgeted cost of £5,200. Therefore, the best choice is option D (£5,200).