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:

Personality

The characteristic set of behaviors, cognitions, and emotional patterns that evolve from biological and environmental factors.

Rationality

The characteristic of adhering to or being aligned with logic or reasoning.

Logical Thinking

The process of using reasoning consistently to come to a conclusion, problem solving and decision making based on a set of given rules.

Reasoning

The process of thinking about something in a logical way in order to form a conclusion or judgment.