Dreckman 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 August. When the company prepared its planning budget at the beginning of August,it assumed that 36 customers would have been served.However,31 customers were actually served during August.
The "Other expenses" in the flexible budget for August would have been closest to:
A) $33,500
B) $38,903
C) $28,847
D) $33,100

Question

Dreckman 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 August.  When the company prepared its planning budget at the beginning of August,it assumed that 36 customers would have been served.However,31 customers were actually served during August.
The "Other expenses" in the flexible budget for August would have been closest to:
A) $33,500 
B) $38,903 
C) $28,847 
D) $33,100

Quizplus · Accepted Answer

11ea7761_174a_26db_81a5_896377382b66_TB2580_00

Dreckman Corporation Is a Service Company That Measures Its Output