Varcoe Corporation Bases Its Budgets on the Activity Measure Customers

question 49

Essay

Varcoe Corporation bases its budgets on the activity measure customers served. During September, the company planned to serve 30,000 customers, but actually served 25,000 customers. Revenue is $3.80 per customer served. Wages and salaries are $34,100 per month plus $1.20 per customer served. Supplies are $0.50 per customer served. Insurance is $8,300 per month. Miscellaneous expenses are $6,400 per month plus $0.20 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).