Shaak Corporation Uses Customers Served as Its Measure of Activity

question 2

Essay

Shaak Corporation uses customers served as its measure of activity. The company bases its budgets on the following information: Revenue should be $3.20 per customer served. Wages and salaries should be $21,000 per month plus $0.80 per customer served. Supplies should be $0.70 per customer served. Insurance should be $5,300 per month. Miscellaneous expenses should be $3,100 per month plus $0.10 per customer served.
The company reported the following actual results for October:
Required:
Prepare a report showing the company's revenue and spending variances for October. Label each variance as favorable (F) or unfavorable (U).

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Definitions:

Eukaryotes

Eukaryotes are organisms whose cells have a nucleus enclosed within a nuclear envelope, distinguishing them from prokaryotes.

Prokaryotes

Prokaryotes are unicellular organisms characterized by the absence of a nucleus or any other membrane-bound organelles, including bacteria and archaea.

Cytoplasm

The jelly-like substance within a cell enclosed by the cell membrane, containing all organelles and cell parts.

Nucleus

Of an atom, central core area occupied by protons and neutrons. Of a eukaryotic cell, organelle with a double membrane that holds the cell’s DNA.