Piechocki Corporation Manufactures and Sells a Single Product

question 26

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 activity variance for direct labor in May would be closest to:

• A) $156 U
• B) $156 F
• C) $224 F
• D) $224 U

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Definitions:

Researcher's Manipulation

The deliberate alteration of variables by a researcher in an experiment to determine cause and effect relationships.

Independent Variable

A variable that is manipulated or changed in an experiment to determine its effect on a dependent variable.

Dependent Variable

In an experimental setting, the variable that is being tested and measured, which is expected to change as a result of manipulations in the independent variable.

Independent Variable

In experimental and research settings, the variable that is manipulated or changed to observe its effects on the dependent variable.