Younker Corporation is a shipping container refurbishment company that measures its output by the number of containers
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Question:
Younker Corporation is a shipping container refurbishment company that measures its output by the number of containers refurbished. The company has provided the following estimates of fixed and variable costs that it uses for budgeting purposes and the actual results of operations for April.
Fixed element per month | Variable Element per Reconditioned Container | April Actual Total | |||||
Revenue | ps | 4,600 | ps | 158,600 | |||
Employee wages and salaries | ps | 46,400 | ps | 1,000 | ps | 79,900 | |
restorative materials | ps | 600 | ps | 20.800 | |||
Other expenses | ps | 35,800 | ps | 36,300 | |||
When the company drew up its planning budget in early April, it assumed that 31 containers would have been refurbished. However, in April 34 containers were renewed.
The variation in “Other expenses” expenses for April would have been the closest to ?
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
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