Schoening Corporation Is a Shipping Container Refurbishment Company That Measures

question 265

Multiple Choice

Schoening 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 January. When the company prepared its planning budget at the beginning of January, it assumed that 40 containers would have been refurbished. However, 38 containers were actually refurbished during January.
The revenue variance in the Revenue and Spending Variances column of a report comparing actual results to the flexible budget for January would have been closest to:

• A) $5,400 U
• B) $2,800 U
• C) $5,400 F
• D) $2,800 F

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Definitions:

Evaluate

To assess or determine the value, significance, or extent of something.

Six-figure Accuracy

Six-figure accuracy refers to a level of precision in which a number is accurate to six significant digits, indicating extremely precise measurement or calculation.

Evaluate

To evaluate or gauge the worth, importance, or magnitude of something.

Six-figure Accuracy

A measure of precision that implies numerical values are accurate to within plus or minus one out of a hundred thousand.