Brong Corporation Is a Shipping Container Refurbishment Company That Measures

question 369

Multiple Choice

Brong Corporation is a shipping container refurbishment company that measures its output by the number of containers refurbished. 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 22 containers would have been refurbished. However, 18 containers were actually refurbished during March.
-The spending variance for total expenses for March would have been closest to:

• A) $5,300 U
• B) $300 F
• C) $5,300 F
• D) $300 U

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Definitions:

Company's Benefits

The range of perks and supports offered by an employer to its employees, which may include health insurance, retirement plans, and paid time off.

Retirement Plans

Financial strategies or programs that allow individuals to save for their retirement, often with contributions from employers.

Union Demands

Requests or requirements issued by a labor union on behalf of its members, often relating to wages, working conditions, and benefits during negotiations.

Pension Benefits Standards Act

A federal act regulating pension plans in industries under the jurisdiction of the Government of Canada.