Piechocki Corporation Manufactures and Sells a Single Product

question 200

Multiple Choice

Piechocki 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 5,900 units, but its actual level of activity was 5,940 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:
Actual results for May:
The direct materials in the flexible budget for May would be closest to:

• A) $73,327
• B) $71,874
• C) $71,390
• D) $74,325

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Definitions:

Sodium Hydrogen Carbonate

A chemical compound also known as baking soda, with formula NaHCO3, often used in cooking, cleaning, and neutralizing acids.

Sodium Carbonate

A white, water-soluble salt used widely in manufacturing glass, soaps, and detergents, and as a water softener.

Multiple Proportions

A law stating that when elements combine, they do so in ratios of small whole numbers (part of the foundation of stoichiometry).

Multiple Proportions

This is a law stating that when two elements combine to form more than one compound, the masses of one element that combine with a fixed mass of the other are in a ratio of small whole numbers.