Brong Corporation Is a Shipping Container Refurbishment Company That Measures

question 377

Multiple Choice

Brong 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 March. When the company prepared its planning budget at the beginning of March, it assumed that 22 containers would have been refurbished. However, 18 containers were actually refurbished during March.
The spending variance for total expenses for March would have been closest to:

• A) $5,300 U
• B) $300 F
• C) $5,300 F
• D) $300 U

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Definitions:

Prohibition

The period from 1920 to 1933 in the United States when the manufacture, sale, and transportation of alcoholic beverages were illegal, as mandated by the 18th Amendment and the Volstead Act.

Fordney-McCumber Tariff

A set of tariffs introduced in 1922 that raised American import duties to protect factories and farms, leading to increased international trade tensions.

Free Trade

An economic policy that allows goods and services to be traded across borders without tariffs, quotas, or other restrictions.