Varriano Corporation Bases Its Budgets on the Activity Measure Customers

question 416

Essay

Varriano Corporation bases its budgets on the activity measure customers served. During October, the company planned to serve 31,000 customers, but actually served 34,000 customers. The company has provided the following data concerning the formulas it uses in its budgeting:
Required:
Prepare a report showing the company's activity variances for October. Indicate in each case whether the variance is favorable (F) or unfavorable (U).

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Definitions:

Breach

A breach is the violation or breaking of a law, obligation, or agreement, which can result in a legal dispute or action.

Nonconforming Goods

Products delivered under a contract that fail to meet the specifications or quality standards agreed upon.

Rights and Duties

The legal responsibilities (duties) and entitlements (rights) that are inherent in social and legal norms, contracts, or regulatory frameworks.

Possession

The state or fact of owning, controlling, or having something in one’s own keeping.