Varriano Corporation bases its budgets on the activity measure customers served. During October, the company planned to
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Question:
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 provided the following data concerning the formulas it uses in its budgeting:
Fixed element per month | Variable element per customer | ||||||||
Revenue | - | $ | 3.86 | ||||||
Wages and salaries | $ | 38,200 | $ | 1.33 | |||||
Supplies | $ | 0 | $ | 0.63 | |||||
Insurance | $ | 8,700 | $ | 0.00 | |||||
Miscellaneous expense | $ | 8,200 | $ | 0.53 | |||||
Prepare a report showing the company's activity variances for October. 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.)
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Related Book For
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
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