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Nobriga Corporation uses customers served as its measure of activity.During October, the company budgeted for 29,000 customers, but actually served 33,000 customers.The company has provided the following data concerning the formulas used in its budgeting and its actual results for October:
Data used in budgeting: 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).
Commission Rate
A percentage or fixed fee added to transactions, typically in sales or financial services, as a form of compensation.
Average Gross Earnings
The average total amount of income earned by individuals or entities before any deductions or taxes are applied.
Base Salary
The initial rate of compensation given to an employee, excluding any bonuses or benefits.
Weighted-Average Inventory
A method of calculating the cost of inventory that takes into account the cost of goods sold and the remaining inventory.
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