Vangemert Corporation Uses Customers Served as Its Measure of Activity

Vangemert Corporation uses customers served as its measure of activity.During June, the company budgeted for 22, 000 customers, but actually served 25, 000 customers.The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served:
Revenue: $5.30q
Wages and salaries: $35, 400 + $1.90q
Supplies: $0.70q
Insurance: $9, 600
Miscellaneous expense: $5, 000 + $0.10q
The company reported the following actual results for June: Required:
Prepare a report showing the company's revenue and spending variances for June.Label each variance as favorable (F)or unfavorable (U).

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free