Prestridge Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixedand variable cost estimates that it uses for budgeting purposes and the actual results of operations for August.Fixed Elementper MonthRevenueVariable Element perCustomer Served$ 4,100Actual Totalfor August$ 120,500Employee salaries and wages$ 41,500$ 1,000$ 71,200Travel expenses$ 500$ 14,800Other expenses$ 38,900$ 38,400When the company prepared its planning budget at the beginning of August, it assumed that 31 customers would have been served. However, 29customers were actually served during August.The spending variance for total expenses for August would have been closest to:

Spending variance is the difference between actual cost and flexible budget cost. Flexible Budget…

Prestridge Corporation is a service company that measures its output by the num and variable cost estimates that it uses for budgeting purposes and the actual res Revenue Employee salaries and wages Travel expenses Other expenses Fixed Element per Month Variable Custom $ $ 41,500 $ SA $ 38,900 When the company prepared its planning budget at the beginning of August, it a customers were actually served during August. The spending variance for total expenses for August would have been closest to

Prestridge Corporation is a service company that measures its output by the num and variable cost estimates that it uses for budgeting purposes and the actual res Revenue Employee salaries and wages Travel expenses Other expenses Fixed Element per Month Variable Custom $ $ 41,500 $ SA $ 38,900 When the company prepared its planning budget at the beginning of August, it a customers were actually served during August. The spending variance for total expenses for August would have been closest to

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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