Coderre 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 7,800 units, but its actual level of activity was 7,780 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 activity variance for direct labor in July would be closest to:

$766 F

$766 U

$136 F

$136 U

Transcribed Image Text:

Revenue.. Direct labor... Direct materials... Manufacturing overhead.. Selling and administrative expenses... Total expenses...... Fixed element per month $ 0 0 49,300 26,300 $75,600 Variable element per unit $29.70 $ 6.80 8.90 1.30 0.10 $17.10 Revenue....... Direct labor........ Direct materials... Manufacturing overhead... Selling and administrative expenses.... $224,996 $52,274 $69,312 $57,794 $27,588 Revenue.. Direct labor... Direct materials... Manufacturing overhead.. Selling and administrative expenses... Total expenses...... Fixed element per month $ 0 0 49,300 26,300 $75,600 Variable element per unit $29.70 $ 6.80 8.90 1.30 0.10 $17.10 Revenue....... Direct labor........ Direct materials... Manufacturing overhead... Selling and administrative expenses.... $224,996 $52,274 $69,312 $57,794 $27,588

Answer rating: 100% (QA)

Planning Budget 0 680 x 7800 53040 Flexi... View the full answer