Ekholm 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. Fixed Element per MonthVariable Element per Container RefurbishedRevenue $4,400Employee salaries and wages$44,900 $1,000Refurbishing materials $700Other expenses$30,800 ?When the company prepared its planning budget at the beginning of December, it assumed that 30 containers would have been refurbished. However, 35 containers were actually refurbished during December.?The activity variance for "Employee salaries and wages" for December would have been closest to:
A. $5,000 U
B. $4,000 U
C. $5,000 F
D. $4,000 F
Answer: A
You might also like to view...
A company had net sales of $21,500 and ending accounts receivable of $2,700 for the current period. Its days' sales uncollected equals: (Use 365 days a year.)
A. 7.4 days. B. 8.0 days. C. 58.9 days. D. 45.2 days. E. 45.8 days.
The last stage in the development of any advertising campaign is
A. creating the advertising platform. B. developing the media plan. C. creating the advertising message. D. evaluating the effectiveness of advertising. E. defining the advertising objectives.
The law considers everyone under the age of twenty-one to be a minor
Indicate whether the statement is true or false
Answer the following statements true (T) or false (F)
1. Review engagements provide a moderate level of assurance. 2. Financial statements must be presented fairly as a result of a compilation engagement. 3. Few, if any, procedures are performed during a compilation engagement. 4. The scope of a review engagement is similar to that of an audit. 5. Review engagements involve both substantive and compliance testing.