Question
Gettys Corporation bases its budgets on the activity measure customers served. During October, the company planned to serve 24,000 customers, but actually served 28,000 customers.
Gettys Corporation bases its budgets on the activity measure customers served. During October, the company planned to serve 24,000 customers, but actually served 28,000 customers. The company has provided the following data concerning the formulas it uses in its budgeting:
fixed element per month (1st number) variable element per customer (2nd number)
revenue..................... - $4.90
wages and salaries... $29,000 $1.90
supplies..................... $0 $0.70
insurance................... $9,100 $0.00
miscellaneous........... $5,500 $0.10
Compute the revenue activity variance. State your answer as a positive.
Compute the total expense activity variance. State your answer as a positive.
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