Rients Corporation Is a Service Company That Measures Its Output

question 12

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 total expenses for October would have been closest to:

• A) $600 F
• B) $9,400 U
• C) $600 U
• D) $9,400 F

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Definitions:

Common Law

A legal system based on custom and court rulings rather than written laws passed by a legislature.

National Pollutant Discharge

The release of pollutants from point sources into navigable waters, regulated by national environmental authorities.

Industrial Wastewater

Water that has been contaminated through its use in industrial processes, which requires treatment before being released back into the environment.

Air Quality Statute

Legislation aimed at regulating, controlling, and improving the air quality within a specific area.