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

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 “Employee salaries and wages” for October would have been closest to:

 

Multiple Choice
 
A. $700 F
 
B. $5,800 U
 
C. $700 U
 
D. $5,800 F
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