Arrison Corporation uses customers served as its measure of activity. During July, the company budgeted for 34,000 customers, but actually served 33,000 customers. The company has provided the following data concerning the formulas used in its budgeting and its actual results for July:Data used in budgeting:
Actual results for July:
Required:Prepare the company's flexible budget performance report for July. Label each variance as favorable (F) or unfavorable (U).
Definitions:
Pay Installments
To make payments for a good or service over a period of time in portions, rather than paying the full amount upfront.
Severance
An owner’s removal of chattel that he has affixed; separation or division of joint ownership; action by one of the co-owners that is inconsistent with joint tenancy.
Joint Ownership
Shared ownership of property by two or more parties where all owners have equal rights and obligations regarding the property.
Right Of Way
A type of easement that allows the crossing of another’s land.
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