Stegemann 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 May. Fixed Element per MonthVariable Element per Container RefurbishedActual Total for MayRevenue $5,300$156,400Employee salaries and wages$42,900 $1,300$82,300Refurbishing materials $500$15,100Other expenses$42,900 $41,900?When the company prepared its planning budget at the beginning of May, it assumed that 27 containers would have been refurbished. However, 29 containers were actually refurbished during May.?The activity variance for total expenses for May would have been closest to:
A. $3,600 U
B. $4,900 U
C. $4,900 F
D. $3,600 F
Answer: A
You might also like to view...
At the strategic level of planning, managers must pay attention to the environment outside the organization, be future oriented, and
A. have more stability than at other levels. B. have more control over employee issues. C. have less competition. D. deal with uncertain and competitive conditions. E. be more likely to understand the competition.
What are the phases involved in the development of a new product?
What will be an ideal response?
If fixed costs increase, the break-even point in units will
A) increase B) decrease C) remain the same D) remain the same; however, contribution per unit will decrease
Your marketing team decides to include Jared in a current project because he is known for always challenging the leader’s ideas. This is an example of using which perspective of followership?
A. transformational B. role-based C. relational-based D. servant