Problem $3$

Boston Corporation uses customers served as its measure of activity. During April, the company

budgeted for $38,000$ customers, but actually served $37,000$ customers. The company uses the

following revenue and cost formulas in its budgeting, where $q$ is the number of customers

served:

Revenue: $$2\mathrm{.}90q$

Wages and salaries: $$37,200+$$$0\mathrm{.}80q$

Supplies: $$0\mathrm{.}40q$

Insurance: $$8,900$

Miscellaneous expense: $$6,400+$$$0\mathrm{.}10q$

Required:

Prepare a report showing the company's activity variances for April. Label each variance as

favorable $($F$)$ or unfavorable $($U$).$