Burau Corporation Manufactures and Sells a Single Product

question 262

Multiple Choice

Burau Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During January, the company budgeted for 5,500 units, but its actual level of activity was 5,510 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for January:

Data used in budgeting:
Actual results for January:
-The spending variance for direct materials in January would be closest to:

• A)$1,436 U
• B)$1,560 F
• C)$1,560 U
• D)$1,436 F

---

Definitions:

Hypothetical

Pertaining to situations, conditions, or concepts that are possible or imagined rather than real or actual.

Concrete Object

An object that exists in physical form and can be perceived by the senses.

Emotional Intelligence

The ability to recognize, understand, and manage one's own emotions and the emotions of others.

Exam Time

A period designated for the administration of tests to evaluate the knowledge, skills, or abilities of individuals in an educational setting.