Ginnings Corporation Bases Its Budgets on the Activity Measure Customers

question 230

Essay

Ginnings Corporation bases its budgets on the activity measure customers served. During May, the company planned to serve 38,000 customers, but actually served 37,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served:Revenue: $2.90qWages and salaries: $37,200 + $0.80qSupplies: $0.40qInsurance: $8,900Miscellaneous expense: $6,400 + $0.10qRequired:Prepare a report showing the company's activity variances for May. Indicate in each case whether the variance is favorable (F) or unfavorable (U).

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Definitions:

Preoperative

Refers to the period or activities occurring before a surgical operation.

Priority

The state or quality of being earlier in time, order, or importance, often used in planning and decision-making.

Venous Stasis

A condition characterized by the pooling of blood in the veins, usually in the legs, because of poor circulation.

Thrombus

Accumulation of platelets, fibrin, clotting factors, and the cellular elements of the blood attached to the interior wall of a vein or artery, sometimes occluding the lumen of the vessel.