Younker Corporation Is a Shipping Container Refurbishment Company That Measures

question 172

Multiple Choice

Younker 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 and the actual results of operations for April. When the company prepared its planning budget at the beginning of April, it assumed that 31 containers would have been refurbished. However, 34 containers were actually refurbished during April.
The spending variance for "Other expenses" for April would have been closest to:

• A) $3,203 F
• B) $500 F
• C) $500 U
• D) $3,203 U

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