Varriano Corporation Bases Its Budgets on the Activity Measure Customers

question 173

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:

Tax Revenues

The income that is gained by governments through taxation, used to fund public expenditures.

States

Political entities characterized by a defined territorial area, a permanent population, a government, and the capacity to enter into relations with other states.

Government Employees

Individuals who work in various departments and agencies of the government and are responsible for implementing public policies and providing services to citizens.

State And Local Levels

Refers to the administrative or government divisions below the national level, including states, provinces, counties, and municipalities, each with its own set of laws and regulations.