Prestridge Corporation Is a Service Company That Measures Its Output

question 374

Multiple Choice

Prestridge 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 August. When the company prepared its planning budget at the beginning of August, it assumed that 31 customers would have been served. However, 29 customers were actually served during August.
The spending variance for total expenses for August would have been closest to:

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

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Definitions:

Dyspareunia

Painful intercourse, which can result from medical or psychological causes, affecting both men and women.

Vulvar Epithelium

The outermost layer of cells covering the vulva, which is the external female genitalia.

Vulvodynia

Chronic pain or discomfort around the opening of the vagina (vulva) for which there's no identifiable cause and which can affect a woman's quality of life.