Blakesley Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes.
When the company prepared its planning budget at the beginning of January, it assumed that 38 customers would have been served. However, 42 customers were actually served during January.
Required:
Prepare a report showing the company's activity variances for January. Indicate in each case whether the variance is favorable (F) or unfavorable (U).
Definitions:
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