Mouton Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During July, the company budgeted for 7,300 units, but its actual level of activity was 7,350 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for July:

Data used in budgeting:
Actual results for July:
-The direct labor in the planning budget for July would be closest to:
A)$32,340
B)$32,378
C)$32,120
D)$32,600

Question

Mouton Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During July, the company budgeted for 7,300 units, but its actual level of activity was 7,350 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for July:

Data used in budgeting:

Actual results for July:

-The direct labor in the planning budget for July would be closest to:

Data used in budgeting:
 Actual results for July: 
-The direct labor in the planning budget for July would be closest to:
A)$32,340 
B)$32,378 
C)$32,120 
D)$32,600

Quizplus · Accepted Answer

Cost = Fixed cost per unit + Variable cost per unit F1F1F1S1F1F1F10 q
= $0 + $4.40 F1F1F1S1F1F1F10 7,300 = $32,120

Mouton Corporation Manufactures and Sells a Single Product