Arrasmith Corporation Uses Customers Served as Its Measure of Activity

question 197

Essay

Arrasmith Corporation uses customers served as its measure of activity. During February, the company budgeted for 35,000 customers, but actually served 34,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served:Revenue: $3.50qWages and salaries: $33,200 + $1.10qSupplies: $0.50qInsurance: $10,400Miscellaneous expense: $6,400 + $0.30qThe company reported the following actual results for February:
Required:Prepare the company's flexible budget performance report for February. Label each variance as favorable (F) or unfavorable (U).

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Definitions:

Client-therapist Relationship

The professional and therapeutic bond between a psychologist or therapist and their client, which is foundational to the treatment's effectiveness.

Evidence-based Treatment

Therapeutic interventions that have been scientifically tested and proven to be effective for specific disorders.

Cognitive-behavioral Therapy

An approach in psychotherapy that targets unhealthy emotions, actions, and mindsets through an organized, purposeful method.

Gestalt Therapy

The humanistic therapy developed by Fritz Perls in which clinicians actively move clients toward self-recognition and self-acceptance by using techniques such as role playing and self-discovery exercises.