Sombra 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 7,600 units, but its actual
level of activity was 7,550 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:
Revenue
Fixed
cost per
month
Variable
cost per
unit
$35.10
Direct labor
$\text{ }0
$ 5.70
Direct materials
0
13.10
Manufacturing overhead
33,000
2.60
Selling and administrative expenses
26,400
4.00
Total expenses
$59,400
$25.40
Actual results for May:
Revenue
Direct labor
Direct materials
Manufacturing overhead
$266,200
$ 43,110
$ 99,990
$ 48,000
Selling and administrative expenses $ 30,560
The spending variance for direct materials in May would be closest to:
