Klingshirn Corporation Is a Service Company That Measures Its Output

question 245

Essay

Klingshirn 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 and the actual results of operations for December.
When the company prepared its planning budget at the beginning of December, it assumed that 25 customers would have been served. However, 23 customers were actually served during December.
Required:
Prepare a performance report showing the company's activity and revenue and spending variances for December. Indicate in each case whether the variance is favorable (F) or unfavorable (U).

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Definitions:

Verbal Memory

The ability to remember and recall words and other verbal items; a component of cognitive functioning related to the processing and use of language.

Inductive Reasoning

A logical process in which multiple premises, all believed true, are combined to obtain a specific conclusion.

Longitudinal Research

A research design that follows the same individuals over time.

Cross-sectional Research

A research method that involves analyzing data from a population, or a representative subset, at a specific point in time to identify trends and patterns.