Business, 12.08.2020 04:01 ramose7021
Pattison 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.
Fixed Element per Month Variable Element per Customer Served
Revenue $ 5,500
Employee salaries and wages $ 46,300 $ 1,000
Travel expenses $ 500
Other expenses $ 32,500
When the company prepared its planning budget at the beginning of May, it assumed that 20 customers would have been served. However, 17 customers were actually served during May.
The activity variance for "Travel expenses" for May would have been closest to:
A. $1,500 U
B. $1,500 F
C. $2,000 F
D. $2,000 U
Answers: 3
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Pattison Corporation is a service company that measures its output by the number of customers served...
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