Problem:
Hartman Industries produces and markets a singular item. The firm measures its operations in units for budgeting and performance evaluation purposes. In August, Hartman budgeted for 6,900 units; however, the actual production output reached 6,940 units. The company has disclosed the following details regarding its budgeting formulas and the actual outcomes for August: Data used in budgeting: Fixed element per month Variable element per unit Revenue $ 0 $ 32.10 Direct labor $ 0 $ 5.00 Direct materials 0 13.60 Manufacturing overhead 31,500 1.20 Selling and administrative expenses 23,700 0.70 Total expenses $ 55,200 $ 20.50 Actual results for June: Revenue $ 219,604 Direct labor $ 34,990 Direct materials $ 94,364 Manufacturing overhead $ 39,668 Selling and administrative expenses $ 29,888 The spending variance for direct materials in August would be closest to: Group of answer choices $524 F $20 F $20 U $524 U