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Sincell Corporation uses customers served as its measure of activity. During April, the company budgeted for 22,300 customers, but actually served 24,300 customers. The company
Sincell Corporation uses customers served as its measure of activity. During April, the company budgeted for 22,300 customers, but actually served 24,300 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served: Revenue: $4.10q Wages and salaries: $33,500 + $1.10q Supplies: $0.70q Insurance: $7,400 Miscellaneous expense: $3,700 + The company reported the following actual results for April: Revenue Wages and salaries $0.30q plies Insurance Miscellaneous expense $ 100,800 $ 59,700 $ 18,400 $ 8,175 $ 11,975 Required: Prepare a report showing the company's revenue and spending variances for April. Label each variance as favorable (F) or unfavorable (U). Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfa sable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.
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