Piechocki 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 5,900 units, but its actual level of activity was 5,940 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 - $32.60 Direct labor$0 $3.90Direct materials 0 12.10Manufacturing overhead 33,400 1.80Selling and administrative expenses 28,300 0.40Total expenses$61,700 $18.20?Actual results for May: Revenue$200,564Direct labor$22,786Direct materials$73,824Manufacturing overhead$43,922Selling and administrative
expenses$31,896?The activity variance for direct labor in May would be closest to:
A. $156 U
B. $224 U
C. $224 F
D. $156 F
Answer: A
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