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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
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
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