Dreckman Corporation Is a Service Company That Measures Its Output

question 419

Multiple Choice

Dreckman 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 36 customers would have been served. However, 31 customers were actually served during August.The "Other expenses" in the flexible budget for August would have been closest to:

• A) $33,500
• B) $38,903
• C) $28,847
• D) $33,100

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Definitions:

Parietal Lobes

Lobes at the top of the brain’s cerebral cortex; they contain areas that receive information on pressure, pain, touch, and temperature as well as handle attention and awareness of spatial relationships.

Pressure

The force applied perpendicular to the surface of an object per unit area over which that force is distributed.

Cortex

The outer layer of the cerebrum, involved in numerous high-level brain functions such as thought, memory, and consciousness.

Millimeters

A unit of length in the metric system, equal to one thousandth of a meter.