Lenci Corporation Manufactures and Sells a Single Product

question 383

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 manufacturing overhead in May would be closest to:

• A) $160 U
• B) $225 U
• C) $225 F
• D) $160 F

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Definitions:

Cyclic Pathway

A series of biochemical reactions where the last component regenerates the first, facilitating a continuous process.

Light-Dependent Reactions

The series of biochemical processes in photosynthesis that occur in the thylakoid membranes of chloroplasts, requiring light to produce ATP and NADPH.

Light-Independent Reactions

Carbon-fixing second stage of photosynthesis; use ATP and NADPH to assemble sugars from water and CO2.

Thylakoid Compartment

A membrane-bound structure found within chloroplasts that contains the chlorophyll necessary for photosynthesis.