Dreckman Corporation Is a Service Company That Measures Its Output

question 310

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:

Main Effect

The direct impact of an independent variable on a dependent variable in an experiment or study.

Significant

Indicating that the observed findings in data are unlikely to have occurred by chance, according to a predetermined threshold.

Marginal Mean

The mean value of a variable in a dataset, considering all levels of other variables in a multi-way table or factorial design.

Crime Area

A specific geographic location identified as having a higher incidence of criminal activities compared to other areas.