Prestridge Corporation Is a Service Company That Measures Its Output

question 140

Multiple Choice

Prestridge 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 31 customers would have been served. However, 29 customers were actually served during August.
-The spending variance for total expenses for August would have been closest to:

• A) $2,500 U
• B) $2,500 F
• C) $500 F
• D) $500 U

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Definitions:

Values-Based Leadership

A leadership approach that is rooted in guiding principles and values, influencing others by embodying and promoting those values.

Honesty

The quality of being truthful, fair, and free from deceit in one's actions and statements.

Shared Leadership

A style of leadership that distributes influence among groups and individuals to achieve organizational or team goals.

Responsibility

The state or fact of being accountable or to blame for something, implying the duty to deal with something or of having control over someone.