Lenci Corporation Manufactures and Sells a Single Product

question 169

Multiple Choice

Lenci 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 5,100 units, but its actual level of activity was 5,050 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) $195 U
• B) $980 U
• C) $980 F
• D) $195 F

---

Definitions:

Goals

are desired outcomes or objectives that individuals set for themselves, guiding their actions and decisions.

Personal Deficiencies

The lack or inadequacy of certain traits, skills, or qualities within an individual, which may affect their performance or social interactions.

Modeling

The process of learning behaviors, attitudes, or emotional reactions through observing and imitating others, often discussed in the context of social learning theory.

Subjects

In a research context, individuals or groups participating in a study.