Ruozzo Corporation Is a Service Company That Measures Its Output

question 17

Multiple Choice

Ruozzo Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for July. When the company prepared its planning budget at the beginning of July, it assumed that 27 customers would have been served. However, 22 customers were actually served during July.
The spending variance for "Travel expenses" for July would have been closest to:

• A) $2,000 F
• B) $2,000 U
• C) $500 F
• D) $500 U

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Definitions:

Dependent Relationship

Relationship in which one partner has a greater desire for the other to meet his or her needs.

Adult Children

Adults who maintain a dependency relationship with their parents, often characterized by financial support or emotional reliance.

Infrequent Interactions

Occasional or rare engagements or communications between individuals or groups.

Open Disclosure

The practice of openly sharing information, including admitting mistakes or failures, in the spirit of transparency and honesty.