Lenci Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During May, the company budgeted for 5120 units, but its actual level of activity was 5070 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for May:Data used in budgeting: Fixed element per monthVariable element per unitRevenue - $39.80? Direct labor$0 $5.70?Direct materials 0 15.90?Manufacturing overhead 41,700? 1.50?Selling and administrative expenses 22,900? 0.40?Total expenses$64,600? $23.50??Actual results for May: Revenue$198,010?Direct labor$28,765?Direct materials$80,465?Manufacturing
overhead$48,905?Selling and administrative expenses$22,880?The spending variance for manufacturing overhead in May would be closest to:
A. $400 U
B. $475 U
C. $400 F
D. $475 F
Answer: C
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