DEF Corporation uses customers served as its measure of activity. During October, the company budgeted for...
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DEF Corporation uses customers served as its measure of activity. During October, the company budgeted for 29,000 customers, but actually served 33,000 customers. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October: Data used in budgeting Revenue Wages and salaries Supplies Insurance Miscellaneous expense Actual results for October Revenue Wages and salaries Supplies Fixed element per month $25.500 SO $6,000 $3,700 $94.500 $51,100 $12,100 Variable element per customer i $2.90 $0.80 $0.30 $0.00 $0.40 concerning the formulas used in its budgeting and its actual results for October: Data used in budgeting Revenue Wages and salaries Supplies Insurance Miscellaneous expense Actual results for October Revenue Wages and salaries Supplies Insurance Miscellaneous expense Fixed element per month $25,500 $0 $6,000 $3,700 $94,500 $51,100 $12,100 $3,000 $16,000 Variable element per customer $2.90 $0 80 $0.30 $0.00 $0.40 Required Prepare a report showing the company's revenue and spending variances for October Label each variance as favorable (F) or unfavorable (U). DEF Corporation uses customers served as its measure of activity. During October, the company budgeted for 29,000 customers, but actually served 33,000 customers. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October: Data used in budgeting Revenue Wages and salaries Supplies Insurance Miscellaneous expense Actual results for October Revenue Wages and salaries Supplies Fixed element per month $25.500 SO $6,000 $3,700 $94.500 $51,100 $12,100 Variable element per customer i $2.90 $0.80 $0.30 $0.00 $0.40 concerning the formulas used in its budgeting and its actual results for October: Data used in budgeting Revenue Wages and salaries Supplies Insurance Miscellaneous expense Actual results for October Revenue Wages and salaries Supplies Insurance Miscellaneous expense Fixed element per month $25,500 $0 $6,000 $3,700 $94,500 $51,100 $12,100 $3,000 $16,000 Variable element per customer $2.90 $0 80 $0.30 $0.00 $0.40 Required Prepare a report showing the company's revenue and spending variances for October Label each variance as favorable (F) or unfavorable (U).
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Step 1 Particulars Revenue Wages and salaries Supplies Insurance Misce... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0078111006
14th edition
Authors: Ray Garrison, Eric Noreen and Peter Brewer
Posted Date:
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