varcoe Corporation bases its budgets on the activity measure customers served. During September, the company planned to serve 30,500 customers, but actually served 25,500 customers. Revenue is $3.81 per customer served. Wages and salaries are $34,200 per month plus $1.21 per customer served. Supplies are $0.51 per customer served. Insurance is $8,400 per month. Miscellaneous expenses are $6,500 per month plus $0.21 per customer served.
varcoe Corporation bases its budgets on the activity measure customers served. During September, the company planned to serve 30,500 customers, but actually served 25,500 customers. Revenue is $3.81 per customer served. Wages and salaries are $34,200 per month plus $1.21 per customer served. Supplies are $0.51 per customer served. Insurance is $8,400 per month. Miscellaneous expenses are $6,500 per month plus $0.21 per customer served.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Varcoe Corporation bases its budgets on the activity measure customers served. During September, the company planned to
serve 30,500 customers, but actually served 25,500 customers. Revenue is $3.81 per customer served. Wages and salaries are
$34,200 per month plus $1.21 per customer served. Supplies are $0.51 per customer served. Insurance is $8,400 per month.
Miscellaneous expenses are $6,500 per month plus $0.21 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). (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
Flexible
Budget
Planning
Budget
Activity Variances
Customers served
25,500
30,500
Revenue
Expenses:
Wages and salaries
Supplies
Insurance
Miscellaneous expense
Total expense
Net operating income (loss)
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