Wellmann Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable costestimates that it uses for budgeting purposes and the actual results of operations for February.Fixed ElementVariable Element perActual Total forFebruary$149,500per MonthCustomer ServedRevenue$4,800Employee salaries and wagesTravel expenses$ 85,800$ 18,400.$ 40,100$50,500$1,200$ 600Other expenses$41,000When the company prepared its planning budget at the beginning of February, it assumed that 35 customers would have been served. However, 31 customers wereactually served during February.The spending variance for total expenses for February would have been closest to:Multiple Choice$10,200 U$3,000 F$3,000 U$10,200 F

The variances are the difference between the actual figure with the budgeted one. A spending…

Wellmann 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 February. Fixed Element Variable Element per Actual Total for per Month Customer Served $4,800 $1,200 $ 600 February $149,500 $ 85,800 $ 18,400 $ 40,100 Revenue Employee salaries and wages Travel expenses $50,500 Other expenses $41,000 When the company prepared its planning budget at the beginning of February, it assumed that 35 customers would have been served. However, 31 customers were actually served during February. The spending variance for total expenses for February would have been closest to: Multiple Choice

Wellmann 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 February. Fixed Element Variable Element per Actual Total for per Month Customer Served $4,800 $1,200 $ 600 February $149,500 $ 85,800 $ 18,400 $ 40,100 Revenue Employee salaries and wages Travel expenses $50,500 Other expenses $41,000 When the company prepared its planning budget at the beginning of February, it assumed that 35 customers would have been served. However, 31 customers were actually served during February. The spending variance for total expenses for February would have been closest to: Multiple Choice

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter23: Flexible Budgeting (flexbud)

Section: Chapter Questions

Problem 1R

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