El Connect tps//newconnect connect,html Help Save&Exit; Mcdougald Corporation is

Question

El Connect tps//newconnect connect,html Help Save&Exit; Mcdougald Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and and the actual results of operations for March variable cost estimates that it uses for budgeting g purposes Element VariableActual Element per Total for per Month Cu stomer March Revenue Employee salaries and wages$58,400 Travel expenses Other expenses $6,580 $169,700e $1,e00$ 83,200 $ 70018,60e $ 41,900 $41,580 When the company prepared its planning budget at the beginning of March, It assumed that 21 customers would have been served. However, 26 customers were actually served during March The spending variance for "Employee salaries and wages" for March would have been closest to Multiple Choice $1,200 F $3,800 F $3,800 U 1,200 U

Explanation / Answer

Spending variance of employees wages and salaries :

Spending variance = (26*1000+58400) - 83200 = 1200 F

so answer is a) $1200 F

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