Rients 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 October. Fixed Element per MonthVariable Element per Customer ServedActual Total for OctoberRevenue $4,100$182,900Employee salaries and wages$42,300 $1,300$98,800Travel expenses $700$30,500Other expenses$31,500 $31,900When the company prepared its planning budget at the beginning of October, it assumed that 39 customers would have been served. However, 44 customers were actually served during October.The revenue variance in the Revenue and Spending Variances column of a report comparing actual results to the flexible budget
for October would have been closest to:
A. $2,500 U
B. $23,000 F
C. $2,500 F
D. $23,000 U
Answer: C
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