Piechocki 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 7,500 units, but its actual level of activity was 7,450 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: Fixed element per month Variable element per unit Revenue - $ 35.00 Direct labor $ 0 $ 5.60 Direct materials 0 13.00 Manufacturing overhead 32,000 2.50 Selling and administrative expenses 26,300 0.30 Total expenses $ 58,300 $ 21.40 Actual results for May: Revenue $ 261,850 Direct labor $ 41,800 Direct materials $ 99,895 Manufacturing overhead $ 47,500 Selling and administrative expenses $ 30,550 The direct labor in the planning budget for May would be closest to:

$42,000

Explanation:

Direct Labor per Unit = $5.60

Total Planning Budget Units = 7,500 Units

Direct Labor for Planning Budget = Total Planning Budget Units * Direct Labor per Unit

Direct Labor for Planning Budget = 7,500 Units * $5.60

Direct Labor for Planning Budget = $42,000

So, the direct labor in the planning budget for May would be closest to $42,000.

answer; ///(c) i believe its it ignores cash flows following the payback period;

(a) when insurance is obtained through a reciprocal insurer, the insureds are sharing the risk of loss with other subscribers of that reciprocal.

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