During a recent month, Cantho Company planned to provide cleaning services to 30 customers for $26 per hour. Each job was expected to take 6.0 hours. The company actually served 10 more customers than expected, but the average time spent on each job was only 5.5 hours each. Cantho's revenues for the month were OA $1,040 less than expected OB. $1.560 more than expected OC. $1.040 more than expected OD. Cannot be determined from data given

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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During a recent month, Cantho Company planned to provide cleaning services to 30 customers for $26 per hour. Each job was expected to take 6.0 hours. The
company actually served 10 more customers than expected, but the average time spent on each job was only 5.5 hours each. Cantho's revenues for the month were
OA $1,040 less than expected
OB. $1.560 more than expected
OC. $1.040 more than expected
OD. Cannot be determined from data given
Transcribed Image Text:During a recent month, Cantho Company planned to provide cleaning services to 30 customers for $26 per hour. Each job was expected to take 6.0 hours. The company actually served 10 more customers than expected, but the average time spent on each job was only 5.5 hours each. Cantho's revenues for the month were OA $1,040 less than expected OB. $1.560 more than expected OC. $1.040 more than expected OD. Cannot be determined from data given
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Revenues are estimated on the basis of past experiences and therefore it is planned what the price should be charged for the services. But the actual may vary on the basis of many reasons and more jobs can lead to lesser prices or more revenues. The variation is calculated so as to know what is actually generated or lost.

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