Question
Data used in budgeting: Actual results for December: Crovo Corporation uses customers served as its measure of activity. During December, the company budgeted for 42,000
Data used in budgeting:
Actual results for December:
Crovo Corporation uses customers served as its measure of activity. During December, the company budgeted for 42,000 customers, but actually served 44,000 customers. The company has provided the following data concerning the formulas used in its budgeting and its actual results for December: | |||||||
Fixed element per month | Variable element per customer | ||||||
Revenue | $ | 2.60 | |||||
Wages and salaries | $ | 20,300 | $ | 0.89 | |||
Supplies | $ | 0 | $ | 0.54 | |||
Insurance | $ | 7,300 | $ | 0.00 | |||
Miscellaneous | $ | 3,300 | $ | 0.34 | |||
Revenue | $ | 111,300 | |||||
Wages and salaries | $ | 56,000 | |||||
Supplies | $ | 21,860 | |||||
Insurance | $ | 9,300 | |||||
Miscellaneous | $ | 21,860 | |||||
Required: | |||||||
Complete the report showing the company's revenue and spending variances for December. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.) | |||||||
Crovo Corporation Revenue and Spending Variances For the Month Ended December 31 | |||||||
Flexible Budget | Actual Results | Revenue and Spending Variances | |||||
Customers served | |||||||
Revenue | $ | $ | $ | ||||
Expenses: | |||||||
Wages and salaries | |||||||
Supplies | |||||||
Insurance | |||||||
Miscellaneous | |||||||
Total expense | |||||||
Net operating income | $ | $ | $ | ||||
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