Piechocki Corporation Manufactures and Sells a Single Product

question 324

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 8,200 units, but its actual level of activity was 8,250 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 spending variance for direct materials in May would be closest to:

• A) $6,060 U
• B) $6,660 F
• C) $6,660 U
• D) $6,060 F

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Definitions:

Merchandise

Goods or products that are purchased, sold, or traded, often in the context of retail.

Emotional Intelligence

The combination of four abilities: (a) your ability to perceive other’s emotions; (b) your ability to identify your emotions, (c) your ability to understand what’s causing your emotion, and (d) your ability to manage your emotions.

Scheduling

The establishment of a fixed time for visiting a customer’s business.

Travel Pattern

Typical routes or itineraries followed by individuals or groups during their travels, often analyzed for marketing or planning purposes.