Nicolaysen Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During February, the company budgeted for 5,700 units, but its actual level of activity was 5,690 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for February:

Data used in budgeting:

Actual results for February:

-The direct labor in the planning budget for February would be closest to:
A)$21,093
B)$21,090
C)$21,130
D)$21,053

Question

Nicolaysen Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During February, the company budgeted for 5,700 units, but its actual level of activity was 5,690 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for February:

Data used in budgeting:

Actual results for February:

-The direct labor in the planning budget for February would be closest to:

Data used in budgeting:

Actual results for February:

-The direct labor in the planning budget for February would be closest to:
A)$21,093 
B)$21,090 
C)$21,130 
D)$21,053

Quizplus · Accepted Answer

The direct labor in the planning budget is calculated based on the expected labor hours and the labor rate. The closest value to the calculated amount is $21,090.

Nicolaysen Corporation Manufactures and Sells a Single Product