Hallet 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 5,800 units, but its actual level of activity was 5,830 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 - $32.30 Direct labor$0 $3.40Direct materials 0 10.40Manufacturing overhead 46,700 1.10Selling and administrative expenses 26,200 0.80Total expenses$ 72,900 $ 15.70Actual results for May: Revenue$191,229Direct labor$19,872Direct materials$60,622Manufacturing overhead$50,523Selling and administrative
expenses$30,654The selling and administrative expenses in the planning budget for May would be closest to:
A. $30,654
B. $30,840
C. $30,864
D. $30,496
Answer: B
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