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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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