Rients Corporation Is a Service Company That Measures Its Output

question 333

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 variance for net operating income in the Revenue and Spending Variances column of a report comparing actual results to the flexible budget for October would have been closest to:

• A) $3,100 U
• B) $13,600 U
• C) $3,100 F
• D) $13,600 F

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Definitions:

Urine Flow

The process by which urine moves from the kidneys to be expelled from the body.

Glomerular Filtrate

Glomerular filtrate refers to the fluid that passes from the blood into the Bowman's capsule in the kidneys during the filtration process of the urinary system.

Glomerulus

A network of capillaries located at the beginning of a nephron in the kidney, responsible for filtering blood to form urine.

Filtration Rate

A measurement of the volume of fluid that passes through a filter or a membrane within a specified time period.