Lartey Corporation's Cost Formula for Its Selling and Administrative Expense

question 416

Multiple Choice

Lartey Corporation's cost formula for its selling and administrative expense is $22,200 per month plus $27 per unit. For the month of December, the company planned for activity of 5,300 units, but the actual level of activity was 5,270 units. The actual selling and administrative expense for the month was $168,150. The selling and administrative expense in the planning budget for December would be closest to:

• A)$169,107
• B)$165,300
• C)$168,150
• D)$164,490

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Definitions:

Controlled Processes

Human thoughts or actions that occur more slowly and deliberatively, and are motivated by some goal that is often consciously recognized.

Experiential System

A psychological concept emphasizing the role of sensory, emotional, and intuitive experience in influencing thoughts and actions.

Automatic Processes

Human thoughts or actions that occur quickly, often without the aid of conscious awareness.

Hedonistic Avoidance

The behavior of avoiding negative emotions or situations in the pursuit of pleasure or comfort.