Mcdougald Corporation Is a Service Company That Measures Its Output

question 436

Multiple Choice

Mcdougald 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 March. When the company prepared its planning budget at the beginning of March, it assumed that 21 customers would have been served.However, 26 customers were actually served during March. The spending variance for "Employee salaries and wages" for March would have been closest to:

• A)$1,200 F
• B)$3,800 F
• C)$3,800 U
• D)$1,200 U

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