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Business, 17.04.2020 19:56 brookcoyanpeus5y
Kekiwi 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 6,900 units, but its actual level of activity was 6,910 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for January:
Fixed Element per Month Variable element per unit
Revenue - $39.30
Direct labor $0 $3.10
Direct materials 0 18.90
Manufacturing overhead 45,900 1.70
Selling and administrative expenses 27,000 0.30
Total expenses $72,900 $24.00
Revenue $281,473
Direct labor $20,591
Direct materials $134,889
Manufacturing overhead $57,087
Selling and administrative expenses $28,063
The direct materials in the flexible budget for January would be closest to:
a. $130,599
b. $134,694
c. $130,410
d. $135,084
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Kekiwi Corporation manufactures and sells a single product. The company uses units as the measure of...
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