Rients Corporation Is a Service Company That Measures Its Output

question 126

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 "Employee salaries and wages" for October would have been closest to:

• A) $700 F
• B) $5,800 U
• C) $700 U
• D) $5,800 F

---

Definitions:

Sum Of Values

The total obtained by adding together a sequence of numbers, quantities, or items.

Mode

The value that occurs most frequently in a data set.

Average

The most representative score in a set of scores.

Common Average

The arithmetic mean or simple average of a set of values, calculated by summing them up and dividing by the number of values.