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:

Night Vision

The ability to see in low light conditions, either naturally through biological adaptations or through the use of technological aids.

Fovea

A tiny pit located in the macula of the retina that is responsible for sharp central vision.

Opsin

A group of protein molecules found in photoreceptor cells of the retina that play a crucial role in the phototransduction cascade of vision.

Retinal

Refers to the thin layer of tissue that lines the back of the eye on the inside, primarily responsible for receiving light and converting it into neural signals for visual recognition.