Menson Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During December, the company budgeted for 5,800 units, but its actual level of activity was 5,830 units. The company has provided the following data concerning the formulas to be used in its budgeting:
-The direct labor in the planning budget for December would be closest to:
A) $46,057
B) $45,820
C) $43,927
D) $43,701

Question

Menson Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During December, the company budgeted for 5,800 units, but its actual level of activity was 5,830 units. The company has provided the following data concerning the formulas to be used in its budgeting: 
-The direct labor in the planning budget for December would be closest to:
A) $46,057 
B) $45,820 
C) $43,927 
D) $43,701

Quizplus · Accepted Answer

The planning budget for direct labor is calculated based on the expected level of activity and the standard labor rate. Without specific details on these variables, the closest estimate provided is $45,820.

Menson Corporation Manufactures and Sells a Single Product