Rients Corporation is a service company that measures its output by the number of customers...
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Accounting
Rients 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 October.
| Fixed Element per Month | Variable Element per Customer Served | Actual Total for October | |||||
| Revenue | $ | 4,100 | $ | 182,900 | |||
| Employee salaries and wages | $ | 42,300 | $ | 1,300 | $ | 98,800 | |
| Travel expenses | $ | 700 | $ | 30,500 | |||
| Other expenses | $ | 31,500 | $ | 31,900 | |||
When the company prepared its planning budget at the beginning of October, it assumed that 39 customers would have been served. However, 44 customers were actually served during October.
The spending variance for Other expenses for October would have been closest to:
Multiple Choice
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$3,625 F
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$400 U
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$400 F
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$3,625 U
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