Harold Corporation manufactures and sells a single product. The company uses unl

Question

Harold Corporation manufactures and sells a single product. The company uses unlts as the measure of activity In Its budgets and performance reports. During March, the company budgeted for 7,900 units, but its actual level of activity was 7,860 units. The company has provided the following data concerming the formulas used In its budgeting and its actual results for March: Fixed Variable element element per per month unit $39.80 Revenue Direct labor Direct materials Manufacturing overhead Selling and administrative expenses Total expenses s 7.70 18.00 38,200 27,400 $65,600 1.50 0.50 $27.70 Actual results for March: Revenue Direct labor Direct materials Manufacturing overhead Selling and administrative expenses 31,950 $297,318 59,962 $135, 850 51,370 The selling and administrative expenses in the planning budget for March would be closest to: Multiple Choice $31,330 $31,350 $31,950 $32.113

Explanation / Answer

1) Selling and administrative expense in planning budget = (7900*0.50)+27400 = 31350

so answer is b) 31350

2) Wages and salary in planning budget = (3400*5.40+2700) = 21060

so answer is d) 21060

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.