Shaak Corporation uses customers served as its measure of activity. The company bases its budgets on the following information: Revenue should be $6.30 per customer served. Wages and salaries should be $22,300 per month plus $0.90 per customer served. Supplies should be $0.80 per customer served. Insurance should be $5,950 per month. Miscellaneous expenses should be $4,400 per month plus $0.20 per customer served. The company reported the following actual results for October: Customers served. Revenue Wages and salaries Supplies Insurance Miscellaneous expense Required: Prepare a report showing the company's revenue and spending variances for October. Label each variance as favorable (F) or unfavorable (U). Customers served Revenue Expenses: 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. Wages and salaries Supplies Insurance 22,750 $ 177,300 $ 40,725 $ 16,425 Miscellaneous expense $ 5,630 $ 7,530 Total expense Net operating income Shaak Corporation Revenue and Spending Variances For the Month Ended October 31 Actual Results Flexible Budget 22,750 22,750 Revenue and Spending Variances

Shaak Corporation uses customers served as its measure of activity. The company bases its budgets on the following information: Revenue should be $6.30 per customer served. Wages and salaries should be $22,300 per month plus $0.90 per customer served. Supplies should be $0.80 per customer served. Insurance should be $5,950 per month. Miscellaneous expenses should be $4,400 per month plus $0.20 per customer served. The company reported the following actual results for October: Customers served. Revenue Wages and salaries Supplies Insurance Miscellaneous expense Required: Prepare a report showing the company's revenue and spending variances for October. Label each variance as favorable (F) or unfavorable (U). Customers served Revenue Expenses: 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. Wages and salaries Supplies Insurance 22,750 $ 177,300 $ 40,725 $ 16,425 Miscellaneous expense $ 5,630 $ 7,530 Total expense Net operating income Shaak Corporation Revenue and Spending Variances For the Month Ended October 31 Actual Results Flexible Budget 22,750 22,750 Revenue and Spending Variances

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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