Reference no: EM132753213

Neeb Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During January, the company budgeted for 7,000 units, but its actual level of activity was 7,040 units.

The company has provided the following data concerning the formulas used in its budgeting and its actual results for January:

Data used in budgeting:

                              Fixed element per month             Variable element per unit

Revenue                        -                                      $27.20

Direct labor                        $0                                 $3.20

Direct materials                   0                                     9.70

Manufacturing overhead        44,300                                1.10

Selling and administrative expenses  27,000                          0.40

Total expenses                              $71,300                      $14.40

Actual results for January:

Revenue $183,448

Direct labor $23,178

Direct materials $68,808

Manufacturing overhead $49,784

Selling and administrative expenses $30,246

Problem 1: The direct labor in the planning budget for January would be closest to: