Rients Corporation Is a Service Company That Measures Its Output

question 45

Multiple Choice

Rients 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 October. When the company prepared its planning budget at the beginning of October, it assumed that 39 customers would have been served. However, 44 customers were actually served during October.
The spending variance for total expenses for October would have been closest to:

• A) $600 F
• B) $9,400 U
• C) $600 U
• D) $9,400 F

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Definitions:

Poverty Definition

The state of being extremely poor, or the condition of those lacking sufficient money or material possessions for their needs.

Educational Attainment

Refers to the highest level of education an individual has completed.

Health Coverage

Insurance that typically pays for medical, surgical, prescription drug, and sometimes dental expenses incurred by the insured.

Poverty

The state of having insufficient financial resources to meet basic living expenses such as food, clothing, and shelter.