Korsak Corporation is a service company that measures its output by the number o

Question

Korsak 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 budgeting purposes Pixed Variable Element Elenent per per Custoner Served Employee salaries and vages trevel expesses 1,100 43,200 The planning budget for October was based on serving 23 customers, but a total of 19 customers were actually served during October The activity variance for "Travel expenses" for October would have been closest to $2,300F $2,300 U 2,000 U $2,000 F

Explanation / Answer

Calculate travel expenses activity variance :

Activity variance on travel expenses = (23-19)*500

Activity variance on travel expenses = 2000 F

so answer is d) $2000 F

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