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
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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).
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.
Customers served
Revenue
Expenses:
Wages and salaries
Supplies
Insurance
22,750
$ 177,300
$ 40,725
$ 16,425
$ 5,630
$7,530
Miscellaneous expense
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
Transcribed Image Text: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). 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. Customers served Revenue Expenses: Wages and salaries Supplies Insurance 22,750 $ 177,300 $ 40,725 $ 16,425 $ 5,630 $7,530 Miscellaneous expense 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
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