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See below A company bases its budgets on the activity measure customers served. During September, the company planned to serve 38,000 customers, but actually served
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A company 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 static budget variance 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 (i.e., zero variance). Input all amounts as positive values and enter any losses with a minus sign.) Varcoe Corporation Static Budget Variance For the Month Ended September 30 Flexible Bud e 33,000 Planning Static Budget Variance Bud et 38.000 Customers served Revenue Expenses: Wages and salaries Supplies Insurance Miscellaneous expense Total expense Net operating income (loss)
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