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

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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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
February
$149,500
per Month
Customer Served
Revenue
$4,800
Employee salaries and wages
Travel expenses
$ 85,800
$ 18,400.
$ 40,100
$50,500
$1,200
$ 600
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
$10,200 U
$3,000 F
$3,000 U
$10,200 F
Transcribed Image Text: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 February $149,500 per Month Customer Served Revenue $4,800 Employee salaries and wages Travel expenses $ 85,800 $ 18,400. $ 40,100 $50,500 $1,200 $ 600 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 $10,200 U $3,000 F $3,000 U $10,200 F
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