Wisseman Corporation Is a Shipping Container Refurbishment Company That Measures

question 197

Multiple Choice

Wisseman Corporation is a shipping container refurbishment company that measures its output by the number of containers refurbished. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. When the company prepared its planning budget at the beginning of September, it assumed that 28 containers would have been refurbished. However, 26 containers were actually refurbished during September.
The activity variance for total expenses for September would have been closest to:

• A) $400 F
• B) $400 U
• C) $3,000 U
• D) $3,000 F

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Definitions:

Weak Base

A base that partially dissociates into its ions in an aqueous solution, resulting in a weakly alkaline solution, as opposed to a strong base which fully dissociates.

Strong Base

A substance that can readily accept hydrogen ions and is completely or nearly completely dissociated in aqueous solution, resulting in a high pH.

Sudan IV

A lysochrome (fat-soluble dye) used in histology to stain lipids, triglycerides, and lipoproteins in cells and tissues.

Colorimetric PH Indicator

A chemical compound that changes color in response to changes in pH, used to determine the acidity or alkalinity of a solution.