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.)

Varriano Corporation
Activity Variances
For the Month Ended October 31
	Flexible Budget	Planning Budget	Activity Variances
Customers served	49,000	48,000
Revenue
Expenses:
Wages and salaries
Supplies
Insurance
Miscellaneous expense
Total expense
Net operating income

Answer rating: 100% (QA)

To calculate the activity variances for Varriano Corporation we will compare the actual activity lev... View the full answer