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Manter Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During June, the company budgeted for 6,900 units, but its actual level of activity was 6,940 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for June: Data used in budgeting: Fixed element Variable element per month per unit $ 32.10 $ 5.00 Revenue $ 0 Direct labor Direct materials 13.60 Manufacturing overhead Selling and administrative expenses Total expenses 31,500 1.20 23,700 0.70 $ 55, 200 $ 20.50 Actual results for June: $ 219,604 $ 34,990 $ 94,364 $ 39,668 $ 29,888 Revenue Direct labor Direct materials Manufacturing overhead Selling and administrative expenses The spending variance for direct materials in June would be closest to:

Manter Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During June, the company budgeted for 6,900 units, but its actual level of activity was 6,940 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for June: Data used in budgeting: Fixed element Variable element per month per unit $ 32.10 $ 5.00 Revenue $ 0 Direct labor Direct materials 13.60 Manufacturing overhead Selling and administrative expenses Total expenses 31,500 1.20 23,700 0.70 $ 55, 200 $ 20.50 Actual results for June: $ 219,604 $ 34,990 $ 94,364 $ 39,668 $ 29,888 Revenue Direct labor Direct materials Manufacturing overhead Selling and administrative expenses The spending variance for direct materials in June would be closest to:

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead
Section: Chapter Questions
Problem 14P: Fargo Co. manufactures products in batches of 100 units per batch. The company uses a standard cost...
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The spending variance for direct materials in June would be closest to: Multiple Choice O $20 U $524 U $20 F ) $524 F
Transcribed Image Text:The spending variance for direct materials in June would be closest to: Multiple Choice O $20 U $524 U $20 F ) $524 F
Manter Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During June, the company budgeted for 6,900 units, but its actual level of activity was 6,940 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for June: Data used in budgeting: Fixed element Variable element per month per unit Revenue $ 0 $ 0 $ 32.10 $ 5.00 Direct labor Direct materials 13.60 Manufacturing overhead Selling and administrative expenses 31,500 1.20 23,700 0.70 Total expenses $ 55,200 $20.50 Actual results for June: $ 219,604 $ 34,990 $ 94,364 $ 39,668 $ 29,888 Revenue Direct labor Direct materials Manufacturing overhead Selling and administrative expenses The spending variance for direct materials in June would be closest to:
Transcribed Image Text:Manter Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During June, the company budgeted for 6,900 units, but its actual level of activity was 6,940 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for June: Data used in budgeting: Fixed element Variable element per month per unit Revenue $ 0 $ 0 $ 32.10 $ 5.00 Direct labor Direct materials 13.60 Manufacturing overhead Selling and administrative expenses 31,500 1.20 23,700 0.70 Total expenses $ 55,200 $20.50 Actual results for June: $ 219,604 $ 34,990 $ 94,364 $ 39,668 $ 29,888 Revenue Direct labor Direct materials Manufacturing overhead Selling and administrative expenses The spending variance for direct materials in June would be closest to:
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