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Feemster Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 5,900 units, but its actual level of activity was 5,850 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October: Data used in budgeting: Revenue Direct labor Direct materials Manufacturing overhead Selling and administrative expenses Total expenses Actual results for October: Revenue Direct labor Direct materials Fixed element per month $ 176,095 $ 31,510 $ 49,800 $ 45,775 $ 31,670 Manufacturing overhead Selling and administrative expenses The activity variance for direct labor in October would be closest to: $0 $0 0 37,000 27,200 $ 64,200 Variable element per unit $29.90 $ 5.60 8.60 1.30 0.80 $ 16.30

Feemster Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 5,900 units, but its actual level of activity was 5,850 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October: Data used in budgeting: Revenue Direct labor Direct materials Manufacturing overhead Selling and administrative expenses Total expenses Actual results for October: Revenue Direct labor Direct materials Fixed element per month $ 176,095 $ 31,510 $ 49,800 $ 45,775 $ 31,670 Manufacturing overhead Selling and administrative expenses The activity variance for direct labor in October would be closest to: $0 $0 0 37,000 27,200 $ 64,200 Variable element per unit $29.90 $ 5.60 8.60 1.30 0.80 $ 16.30

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 1CMA: Taylor Corporation is analyzing the cost behavior of three cost items, A, B, and C, to budget for...
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Feemster Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 5,900 units, but its actual level of activity was 5,850 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October: Data used in budgeting: Revenue Direct labor Direct materials Manufacturing overhead Selling and administrative expenses Total expenses Actual results for October: Revenue Direct labor Direct materials Fixed element per Variable element month per unit $29.90 $ 5.60 8.60 1.30 0.80 $ 16.30 $ 176,095 $ 31,510 $ 49,800 $ 45,775 $ 31,670 Manufacturing overhead Selling and administrative expenses The activity variance for direct labor in October would be closest to: $0 $0 0 37,000 27,200 $ 64,200
Transcribed Image Text:Feemster Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 5,900 units, but its actual level of activity was 5,850 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October: Data used in budgeting: Revenue Direct labor Direct materials Manufacturing overhead Selling and administrative expenses Total expenses Actual results for October: Revenue Direct labor Direct materials Fixed element per Variable element month per unit $29.90 $ 5.60 8.60 1.30 0.80 $ 16.30 $ 176,095 $ 31,510 $ 49,800 $ 45,775 $ 31,670 Manufacturing overhead Selling and administrative expenses The activity variance for direct labor in October would be closest to: $0 $0 0 37,000 27,200 $ 64,200
Multiple Choice $280 U $280 F $1,530 U $1,530 F
Transcribed Image Text:Multiple Choice $280 U $280 F $1,530 U $1,530 F
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