Rients Corporation Is a Service Company That Measures Its Output

question 317

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 spending variance for "Employee salaries and wages" for October would have been closest to:

• A) $700 F
• B) $5,800 U
• C) $700 U
• D) $5,800 F

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Definitions:

Psychodynamic Approach

A psychological theory and therapy that emphasizes unconscious processes and past conflicts as determinants of behavior.

Sigmund Freud

An Austrian neurologist who is best known for founding psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Super-Ego

The strict and demanding part of the mind.

Ego

In psychoanalytic theory, it represents the part of the mind that mediates between the conscious and the unconscious and is responsible for reality testing and a sense of personal identity.