Gilson Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During April, the company budgeted for 5,100 units, but its actual level of activity was 5,060 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for April: Data used in budgeting: Actual results for April: The spending variance for direct materials in April would be closest to:
A)$2,020 F
B)$2,020 U
C)$2,424 F
D)$2,424 U

Question

Gilson Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During April, the company budgeted for 5,100 units, but its actual level of activity was 5,060 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for April: Data used in budgeting:  Actual results for April:  The spending variance for direct materials in April would be closest to:
A)$2,020 F 
B)$2,020 U 
C)$2,424 F 
D)$2,424 U

Quizplus · Accepted Answer

The Answer of Gilson Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During April, the company budgeted for 5,100 units, but its actual level of activity was 5,060 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for April: Data used in budgeting:  Actual results for April:  The spending variance for direct materials in April would be closest to:
A)$2,020 F 
B)$2,020 U 
C)$2,424 F 
D)$2,424 U

Gilson Corporation Manufactures and Sells a Single Product