Blakesley Corporation Is a Service Company That Measures Its Output

question 73

Essay

Blakesley Corporation is a service company that measures its output by the number of customers served.The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes.
When the company prepared its planning budget at the beginning of January,it assumed that 38 customers would have been served.However,42 customers were actually served during January.
Required:
Prepare a report showing the company's activity variances for January.Indicate in each case whether the variance is favorable (F)or unfavorable (U).

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Definitions:

Legally Recognized

Having formal acknowledgment or validation under the law or by authoritative bodies, conferring certain rights or statuses.

Grieving Adolescent

An adolescent experiencing the emotional, cognitive, physical, and social responses to the loss of a loved one or significant life change.

Friends

Individuals with whom one shares a bond of mutual affection, typically exclusive of sexual or family relations.

Guilt

A feeling of responsibility or remorse for some offense, crime, wrong, whether real or imagined.