Rients Corporation Is a Service Company That Measures Its Output

question 72

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 "Other expenses" for October would have been closest to:

• A) $400 F
• B) $3,625 F
• C) $400 U
• D) $3,625 U

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Definitions:

Prices

The amount of money expected, required, or given in payment for something.

Unemployment

Unemployment refers to the situation when individuals who are able and willing to work cannot find employment.

Price Level

The median price level of all goods and services currently offered in the economy.

Previous Year

The 12-month period immediately before the current year, used as a reference point for comparing data or statistical analysis.