Piechocki Corporation Manufactures and Sells a Single Product

question 351

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:

Formal Decision Procedures

Defined, structured methodologies and protocols for making choices and judgments within an organization.

Empowerment Programs

Initiatives designed to give employees more autonomy, responsibility, and authority over their work, aiming to increase engagement and accountability.

Participative Leadership

A leadership style where the leader involves team members in decision-making processes, ensuring their input is considered.

Acute Illness

A disease or condition that comes on suddenly and is typically short in duration, often requiring immediate care.