Lenci Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance repor During May, the company budgeted for 5,170 units, but its actual level of activity was 5,120 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for May: Data used in budgeting: Revenue Direct labor Direct materials. Manufacturing overhead Selling and administrative expenses Total expenses Actual results for May: Revenue Direct labor Direct materials Fixed element per month 0 $0 0 42,200 23,400 $ 65,600 $ 198,510 $ 29,265 $ 80,965 $ 51,905 $ 23,380 Variable element per unit $ 40.30 $ 6.20 16.40 2.00 .90 $ 25.50 Manufacturing overhead Selling and administrative expenses The spending variance for manufacturing overhead in May would be closest to:
Lenci Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance repor During May, the company budgeted for 5,170 units, but its actual level of activity was 5,120 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for May: Data used in budgeting: Revenue Direct labor Direct materials. Manufacturing overhead Selling and administrative expenses Total expenses Actual results for May: Revenue Direct labor Direct materials Fixed element per month 0 $0 0 42,200 23,400 $ 65,600 $ 198,510 $ 29,265 $ 80,965 $ 51,905 $ 23,380 Variable element per unit $ 40.30 $ 6.20 16.40 2.00 .90 $ 25.50 Manufacturing overhead Selling and administrative expenses The spending variance for manufacturing overhead in May would be closest to:
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter9: Profit Planning And Flexible Budgets
Section: Chapter Questions
Problem 48BEB: Performance Report Based on Budgeted and Actual Levels of Production Balboa Company budgeted...
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Choices:
A. $645 U
B. $535 U
C. $535 F
D. $635 F
Transcribed Image Text:Lenci Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports.
During May, the company budgeted for 5,170 units, but its actual level of activity was 5,120 units. The company has provided the following data
concerning the formulas used in its budgeting and its actual results for May:
Data used in budgeting:
Revenue
Direct labor
Direct materials
Manufacturing overhead
Selling and administrative expenses
Total expenses
Actual results for May:
Revenue
Direct labor
Direct materials
Fixed
element
per month
0
$0
0
42,200
23,400
$
65,600
$ 198,510
$ 29,265
$ 80,965
$ 51,905
$ 23,380
Variable
element
per unit
$ 40.30
$ 6.20
16.40
2.00
.90
$ 25.50
Manufacturing overhead
Selling and administrative expenses
The spending variance for manufacturing overhead in May would be closest to:
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