Prestridge Corporation Is a Service Company That Measures Its Output

question 82

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

• A) $4,100 U
• B) $4,100 F
• C) $1,100 U
• D) $1,100 F

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Definitions:

Stable Conformation

The most energetically favorable arrangement of atoms in a molecule that minimizes strain.

Chair Conformations

A specific, stable three-dimensional shape adopted by cyclic molecules such as cyclohexane, minimizing steric strain and offering two alternating conformations.

Axial Ethyl

Refers to an ethyl group attached perpendicular to the plane of a molecule, especially in cyclic compounds.

Equatorial Ethyl

A term not typically used in standard chemical nomenclature and could refer to the placement of an ethyl group in an equatorial position on a cyclohexane ring, emphasizing its spatial orientation.