Rients Corporation Is a Service Company That Measures Its Output

question 335

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 total expenses for October would have been closest to:

• A) $600 F
• B) $9,400 U
• C) $600 U
• D) $9,400 F

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Definitions:

Age

The length of time that a person or thing has existed; a particular stage in someone's life.

Accumulation

The process of gradually gathering or acquiring an increasing number or quantity of certain items or substances.

Mathematics

The abstract science of numbers, quantity, and space, either as abstract concepts (pure mathematics), or as applied to other disciplines such as physics and engineering (applied mathematics).

Fluid Intelligence

An aptitude for logical thinking and resolving issues in unfamiliar circumstances, without relying on known information.