Shaak Corporation Uses Customers Served as Its Measure of Activity

question 168

Essay

Shaak Corporation uses customers served as its measure of activity.The company bases its budgets on the following information:
Revenue should be $3.20 per customer served.Wages and salaries should be $21,000 per month plus $0.80 per customer served.Supplies should be $0.70 per customer served.Insurance should be $5,300 per month.Miscellaneous expenses should be $3,100 per month plus $0.10 per customer served.
The company reported the following actual results for October:
Required:
Prepare a report showing the company's revenue and spending variances for October.Label each variance as favorable (F)or unfavorable (U).

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Definitions:

Universal Concepts

Ideas or principles that are universally applicable and understood across cultures and individual differences.

Psychological Processes

Internal mechanisms and operations that influence the mind's function, such as perception, memory, and emotion.

Inferiority Complex

A psychological condition stemming from persistent feelings of inadequacy and a lack of self-esteem, often leading to overcompensation or withdrawal.

Genetic Defects

Abnormalities in the genome that lead to diseases or conditions, often hereditary.