Varcoe Corporation bases its budgets on the activity measure customers served. During September, the company planned...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Varcoe Corporation bases its budgets on the activity measure customers served. During September, the company planned to serve 37,500 customers, but actually served 32,500 customers. Revenue is $3.95 per customer served. Wages and salaries are $35,600 per month plus $1.35 per customer served. Supplies are $0.65 per customer served. Insurance is $9,800 per month. Miscellaneous expenses are $7,900 per month plus $0.35 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). Note: 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 Activity Variances For the Month Ended September 30 Customers served Revenue Expenses: Wages and salaries Supplies Insurance Miscellaneous expense Total expense Net operating income (loss) Flexible Budget Planning Budget Activity Variances 32,500 37,500 U Varcoe Corporation bases its budgets on the activity measure customers served. During September, the company planned to serve 37,500 customers, but actually served 32,500 customers. Revenue is $3.95 per customer served. Wages and salaries are $35,600 per month plus $1.35 per customer served. Supplies are $0.65 per customer served. Insurance is $9,800 per month. Miscellaneous expenses are $7,900 per month plus $0.35 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). Note: 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 Activity Variances For the Month Ended September 30 Customers served Revenue Expenses: Wages and salaries Supplies Insurance Miscellaneous expense Total expense Net operating income (loss) Flexible Budget Planning Budget Activity Variances 32,500 37,500 U
Expert Answer:
Answer rating: 100% (QA)
Answer To calculate the activity variances for Varcoe Corporation for the month ended September 30 we need to compare the actual results with the flexible budget based on the actual level of activity ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Varriano Corporation bases its budgets on the activity measure customers served. During October, the company planned to serve 48,000 customers, but actually served 49,000 customers. The company has...
-
f(x) = { x+4 if -6 for x for -1 f(x) = { 4 if -1 for x for 2 f(x) = { 5/2x+8 if 2 for x for 6 Complete the description of the piecewise function graphed below. 2 + --3-2-1 + -2
-
SUBJECT 3 (2.5 UNITS)The company "APOLLON" has calculated that for the production of oneunitof finished product requires standards of 8 kg of direct materials(AU) and thestandard price was set at 2...
-
Why would a Payless Shoe Source store locate in a neighbourhood shopping centre instead of a regional shopping mall?
-
If the owner of a company takes merchandise for personal use, what account is debited? a. Owners capital b. Owners withdrawals c. Purchases d. Cash
-
A family has three children. If the genders of these children are listed in the order they are born, there are eight possible outcomes: BBB, BBG, BGB, BGG, GBB, GBG, GGB, and GGG. Assume these...
-
Chamberlin Company estimates that 360,000 direct labor hours will be worked during the coming year, 2012, in the Packaging Department. On this basis, the following budgeted manufacturing overhead...
-
1a. List 5 benefits and five (5) challenges of performance assessment? 1b. Link each benefit to the impact on the organization AND the individual? 1c. In module one you identified the link between...
-
Lone Wolf Technologies Inc. assembles circuit boards by using a manually operated machine to insert electronic components. The original cost of the machine is $77,400, the accumulated depreciation is...
-
An observer is stationary on a merry-go-round at a distance \(R=3 \mathrm{~m}\) from the axis of rotation. The merry-go-round, starting from a standstill, begins to rotate with constant angular...
-
Ganymede is a satellite of the planet Jupiter, like the Moon for Earth. Using the data below, determine: 1. the acceleration of gravity \(g_{G}\) on Jupiter (for comparison, the acceleration of...
-
Determine the angular speed of the hour and minute hands of a clock (of course, with hands and not digital!). If at 3:00 (a.m. or p.m.) the angle between the hour hand and minute hand form an angle...
-
Successful interviews require diligent preparation and repeated practice. To be well prepared, you need to know what skills are required for your targeted position. In addition to computer and...
-
A body of mass \(m=10.0 \mathrm{~g}\) is dropped from an initial height \(h=50.0 \mathrm{~cm}\) along a frictionless circular guide, as in Fig. 8.15. At the end of the circular guide, the body moves...
-
Read the HD Supply Description. Requirements: 1. Description of Firm and business model 2. Mission statement: does it relate to what the firm is doing? 3. VISION & Long range objectives 4. Values...
-
Nike manufactures shoes and sportswear. How has the Internet changed the way this company communicates with its suppliers and retail customers?
-
A healthy diet is becoming increasingly important for consumers, especially women aged 2535. As a result, they are taking active steps to ensure they are eating healthy but are also looking for other...
-
Lael was just hired by Best East Motels into their manager training program and was excited about the potential benefits after her graduation from Florida State University. Working part-time and...
-
Sophie just completed a sales training course with one of the firms most productive sales representatives, Emma. At the end of the first week, Sophie and Emma sat in a motel room filling out their...
Study smarter with the SolutionInn App