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Can you please double check my work so far, and help me with the activity variances and determining if they are favorable or unfavorable? I
Can you please double check my work so far, and help me with the activity variances and determining if they are favorable or unfavorable? I am struggling a bit. Thank you!
Varcoe Corporation bases its budgets on the activity measure customers served. During September, the company planned to serve 38,000 customers, but actually served 33,000 customers Revenue is $3.96 per customer served. Wages and salaries are $35,700 per month plus $1.36 per customer served. Supplies are $0.66 per customer served Insurance is $9.900 per month Miscellaneous expenses are $8,000 per month plus $0,36 per customer served Required: Prepare a report showing the company's activity variances for September Indicate in each case whether the variance is favorable (F) or unfavorable (U). (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts as positive values and enter any losses with a minus sign.) Activity Variances Varcoe Corporation Activity Variances For the Month Ended September 30 Flexible Planning Budget Budget Customers served 33,000 38,000 Revenue S 130,680 5 150.480 Expenses Wages and salines 80,580 37 380 Supplies 21,780 25,000 Insurance 9.900 9.900 Miscellaneous expense 19,880 21.680 Total expense $ 132.140 S 144 040 Net operating income on) S (1.460) 6.40 Step by Step Solution
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