Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Ruozzo 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 July.
Fixed Element per Month Variable Element per Customer Served Actual Total for July
Revenue $ 4,500 $ 100,000
Employee salaries and wages $ 43,100 $ 900 $ 63,300
Travel expenses $ 500 $ 11,500
Other expenses $ 36,900 $ 37,900
When the company prepared its planning budget at the beginning of July, it assumed that 27 customers would have been served. However, 22 customers were actually served during July.
The spending variance for Travel expenses for July would have been closest to:

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

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

Get Started

Recommended Textbook for

College Accounting Chapters 1-9

Authors: James A. Heintz, Robert W. Parry

22nd Edition

1305666186, 9781305666184

More Books

Students also viewed these Accounting questions

Question

Explain the need for a critical analytical approach to studying HRM

Answered: 1 week ago