Korsak Corporation Is a Service Company That Measures Its Output

question 96

Multiple Choice

Korsak 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.
The planning budget for October was based on serving 23 customers, but a A total of 19 customers were actually served during October.
The Planning budget units is missing and affects the calculations of the subsequent questions.
-The activity variance for net operating income for October would have been closest to:

• A) $15,600 U
• B) $12,500 F
• C) $15,600 F
• D) $12,500 U

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Definitions:

Mistake

An error in understanding or judgment that may affect the validity of a contract.

Frustrated Contract

A contract that, through no fault of either party, has become impossible to perform, leading to its termination and relieving both parties from their obligations.

Breach of Contract

Occurs when one party fails to fulfill their obligations under the contract’s terms, allowing for legal action by the other party.

Transporter

A transporter refers to an individual or service that moves goods or people from one location to another.