Stegemann Corporation Is a Shipping Container Refurbishment Company That Measures

question 22

Multiple Choice

Stegemann 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 May. When the company prepared its planning budget at the beginning of May, it assumed that 27 containers would have been refurbished. However, 29 containers were actually refurbished during May.
The spending variance for "Employee salaries and wages" for May would have been closest to:

• A) $1,700 U
• B) $4,300 U
• C) $1,700 F
• D) $4,300 F

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