Hairston Corporation manufactures and sells a single product. The company uses u

Question

Hairston Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During November, the company budgeted for 7,810 units, but its actual level of activity was 7,830 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for November: Data used in budgeting Variable Fixed element per element per month unit Revenue Direct labor Direct materials Manufacturing overhead Selling and administrative 0 40,400 21,050 42.50 0 10.00 1760 2.70 1.30 Total expenses $ 61,450 31.60 Actual results for November: Revenue Direct labor Direct materials Manufacturing overhead Selling and administrative expenses $331,535 $78,725 $ 137,383 $59,576 $ 31,134 The selling and administrative expenses in the planning budget for November would be closest to: $31,207 $30,167 $31.203 $30,112

Explanation / Answer

Calculate selling and administrative expense in planning budget :

Selling and administrative expense = (7810*1.30+21050) = 31203

So answer is c) $31203

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