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. Fixed Element per MonthVariable Element per Container RefurbishedActual Total for MarchRevenue $5,900$108,300Employee salaries and wages$49,500 $900$66,000Refurbishing materials $500$9,500Other expenses$40,300 $39,800When 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. $300 F
B. $5,300 U
C. $300 U
D. $5,300 F
Answer: C
You might also like to view...
Knowledge of research design is helpful because certain designs can be matched with certain problems and this provides a blueprint for the researcher
Indicate whether the statement is true or false
The number of days' sales in inventory
A) measures the length of time it takes to acquire, sell, and replace the inventory B) is computed by dividing the cost of merchandise sold by 365 C) measures the length of time it takes to sell the merchandise on credit and collect the account receivable D) is about the same for all industries
Transformational leadership has been criticized as ______ for paying too much attention to leaders.
A. leader heavy B. leader powerful C. leader exchange D. leader centric
Most comments on proposed rules are submitted in writing, rather than given as oral testimony
a. True b. False Indicate whether the statement is true or false