Magliacane Corporation Is a Service Company That Measures Its Output

question 378

Multiple Choice

Magliacane 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. When the company prepared its planning budget at the beginning of February,it assumed that 39 customers would have been served.However,35 customers were actually served during February.
The revenue in the company's flexible budget for February would have been closest to:

• A) $170,709
• B) $167,700
• C) $153,200
• D) $150,500

---

Definitions:

Full Balance

This term could refer to the complete settling of a financial account, leaving no outstanding balance.

Endorsement

Official approval or support, often used in the context of public approval by a prominent figure or certification by a regulatory authority.

Date and Time Stamp

A digital or physical mark indicating the specific date and time when an event occurred or a document was created, modified, or received.

Audit Purposes

Activities undertaken to review and inspect the accuracy, completeness, and compliance of financial records and processes within an organization.