Question
Varcoe Corporation bases its budgets on the activity measure customers served. During September, the company planned to serve 30,500 customers, but actually served 25,500 customers.
Varcoe Corporation bases its budgets on the activity measure customers served. During September, the company planned to serve 30,500 customers, but actually served 25,500 customers. Revenue is $3.81 per customer served. Wages and salaries are $34,200 per month plus $1.21 per customer served. Supplies are $0.51 per customer served. Insurance is $8,400 per month. Miscellaneous expenses are $6,500 per month plus $0.21 per customer served. Required: Prepare a report showing the company's activity variances 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.)
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