Sincell Corporation Uses Customers Served as Its Measure of Activity

question 370

Essay

Sincell Corporation uses customers served as its measure of activity. During April, the company budgeted for 22,000 customers, but actually served 24,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served:Revenue: $4.10qWages and salaries: $26,000 + $1.10qSupplies: $0.70qInsurance: $7,100Miscellaneous expense: $3,400 + $0.30qThe company reported the following actual results for April:
Required:Prepare a report showing the company's revenue and spending variances for April. Label each variance as favorable (F) or unfavorable (U).

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Definitions:

Bodily Functioning

Refers to the processes and activities by which the body maintains its vital functions, including respiration, digestion, circulation, and excretion.

Pituitary System

Refers to the activities and functions of the pituitary gland, a small endocrine gland that plays a crucial role in regulating various bodily functions.

Master Gland

A term often used for the pituitary gland because it regulates many critical functions in the body by releasing various hormones.

Pituitary Gland

A small endocrine gland located at the base of the brain that produces and regulates a variety of crucial hormones, influencing growth, metabolism, and reproductive functions.