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 spending variance for direct materials in May would be closest to:
Definitions:
Cash Distribution
The process of paying out earnings to stakeholders, often in the form of dividends to shareholders or distributions to partners.
Liquidation Balances
The final amounts owed to creditors and investors after a company has been liquidated and all assets have been sold off.
Liquidation Process
The procedure of closing a business by selling its assets to pay off its liabilities and distributing any remaining assets to the owners or shareholders.
Gain or Loss
Represents the difference between the sale price of an asset and its original purchase price, indicating a financial profit or deficit.
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