Gayner Corporation is an oil well service company that measures its output by the number of wells serviced. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for November. Fixed Element per MonthVariable Element per Well ServicedActual Total for NovemberRevenue   $4,300$148,400Employee salaries and wages$48,900 $1,000$84,000Servicing materials   $600$20,200Other expenses$30,300   $29,600?When the company prepared its planning budget at the beginning of November, it assumed that 30 wells would have been serviced. However, 34 wells were actually serviced during November.?The spending variance for "Servicing materials" for November would have been closest to:

A. $2,200 F
B. $2,200 U
C. $200 F
D. $200 U


Answer: C

Business

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