Korsak Corporation Is a Service Company That Measures Its Output

question 181

Multiple Choice

Korsak 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. The planning budget for October was based on serving 23 customers, but a total of 19 customers were actually served during October.The activity variance for net operating income for October would have been closest to:

• A) $15,600 U
• B) $12,500 F
• C) $15,600 F
• D) $12,500 U

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Definitions:

Range

The difference between the highest and lowest values in a dataset, offering a simple measure of data spread.

Variance

A measure of the dispersion of a set of data points around their mean, indicating how widely the data values are spread out.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how spread out the values are from the mean.

Contingency Tables

Statistical tables used to display and analyze the relationship between two or more categorical variables.