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Ocean Corporation uses customers served as its measure of activity.During June,the company budgeted for 21,000 customers,but actually served 19,000 customers.The company bases its budgets on the following information:
Revenue should be $5.00 per customer served.Wages and salaries should be $24,900 per month plus $1.80 per customer served.Supplies should be $0.90 per customer served.Insurance should be $6,500 per month.Miscellaneous expenses should be $3,500 per month plus $0.40 per customer served.The company reported the following actual results for June:
Required:
Prepare the company's flexible budget performance report for June.Label each variance as favorable (F)or unfavorable (U).
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