Help SaveExit Subm Keklwi Corporation manufactures and sells

Help Save&Exit; Subm Keklwi Corporation manufactures and sells a single product. The company uses units performance reports. During January, the company budgeted for 6,900 units, but its actual level of actvity was 6.910 units. The company has provided the following data concerning the formulas used in its budgeting and its actual resultsfor January as the measure of ectivity in its budgets and Fixed Variable Element element per Month unit $39.30 Revenue Direct labor Direct materials Manufacturing overhead Selling and administrative $3.10 18.90 1.70 27,0000.30 45,900 Total expenses $72,900$24.00 Revenue Direct labor Direct materials Manufacturing overhead 57,087 20,591 K Prev 12 of 33Next> Graw 9

Solution

$130,599

Working:

Direct Material Flexible Budget	=	Actual level of activity x Budgeted Direct Material costs per unit
				=	6910	x	$    18.90
				=	$ 1,30,599