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. Fixed Element per Variable Element per Actual Total Month Customer Served for August $ 120,500 $ 71, 200 $ 14,800 $ 38,400 Revenue Employee salaries and wages Travel expenses $ 4,100 $ 1,000 $ 500 $ 41,500 Other expenses $ 38,900 When the company prepared its planning budget at the beginning of August, it assumed that 31 customers would have been served. However, 29 customers were actually served during August. The activity variance for total expenses for August would have been closest to: Multiple Choice $3,000 F $2,500 F $2,500 U $3,000 U

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. Fixed Element per Variable Element per Actual Total Month Customer Served for August $ 120,500 $ 71, 200 $ 14,800 $ 38,400 Revenue Employee salaries and wages Travel expenses $ 4,100 $ 1,000 $ 500 $ 41,500 Other expenses $ 38,900 When the company prepared its planning budget at the beginning of August, it assumed that 31 customers would have been served. However, 29 customers were actually served during August. The activity variance for total expenses for August would have been closest to: Multiple Choice $3,000 F $2,500 F $2,500 U $3,000 U

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 1PB

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