Lochner Corporation Is an Oil Well Service Company That Measures

Multiple Choice

Lochner Corporation is an oil well service company that measures its output by the number of wells serviced. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for June. When the company prepared its planning budget at the beginning of June, it assumed that 24 wells would have been serviced. However, 26 wells were actually serviced during June.The spending variance for "Employee salaries and wages" for June would have been closest to:

A) $1,900 U
B) $4,300 U
C) $4,300 F
D) $1,900 F