Rients Corporation Is a Service Company That Measures Its Output

question 408

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

• A) $3,100 U
• B) $13,600 U
• C) $3,100 F
• D) $13,600 F

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Definitions:

Hysterical

An outdated term historically used to describe excessive or uncontrollable emotion or excitement; now more commonly refers to being extremely funny.

Sociopath

A term used to describe a person with antisocial personality disorder, characterized by a disregard for the rights and feelings of others and often engaging in manipulative and criminal behavior.

Psychopath

An individual with a personality disorder characterized by persistent antisocial behavior, impaired empathy and remorse, and bold, disinhibited, and egotistical traits.

Borderline Personality Disorder

A mental health disorder characterized by pervasive instability in moods, interpersonal relationships, self-image, and behavior, often leading to impulsive actions and problems in relationships.