Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Prestridge Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable

image text in transcribed

Prestridge 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 August Variable Fixed Element per Actual Total for Element Customer Served per Month August $120,500 $4,100 Revenue Employee salaries and wages Travel expenses $41,500 $1,000 71,200 $ 14,800 S 38,400 500 Other expenses $38,900 When the company prepared its planning budget August t the beginning of August, it assumed that 31 customers would have been served. However, 29 customers were actually served during The spending variance for total expenses for August would have been closest to: Multiple Choice $500 U $500 F $2.500 E $2,500 U

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions