Consider the following two situations:
Situation A: Barrett Resume Service provides the following data for January:

Required:
Using Barrett’s cost function, comment on each of the following statements.
(a) Barrett spent $400 less than it should have in January.
(b) Barrett spent $100 more than it should have for fixed costs.
{c) Barrett spent $250 more than it should have for variable costs.

Required:
Using Reynolds’ cost function, comment on his budget performance.

Transcribed Image Text:

Number of resumes prepared Variable costs Fixed costs Total costs Budget 5,000 Actual Difference 4,500 (500) $ 7,500 2,000 $ 7,000 $ 500 2,100 (100) $ 9,500 $ 9,100 $ 400