Hairston Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During November, the company budgeted for 7,700 units, but its actual level of activity was 7,720 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for November:

Data used in budgeting:

Actual results for November:

-The direct materials in the flexible budget for November would be closest to:

Question

Hairston Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During November, the company budgeted for 7,700 units, but its actual level of activity was 7,720 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for November:

Data used in budgeting:

Actual results for November:

-The direct materials in the flexible budget for November would be closest to:

Data used in budgeting:

Actual results for November:

-The direct materials in the flexible budget for November would be closest to:

Quizplus · Accepted Answer

The direct materials in the flexible budget for November would be closest to $127,380. This is because the flexible budget is based on the actual production level, which is 10,000 units. The direct materials cost per unit is $12.74, so the total direct materials cost for 10,000 units is $127,380.

Hairston Corporation Manufactures and Sells a Single Product