Wartenberg Corporation Uses Customers Served as Its Measure of Activity

question 291

Essay

Wartenberg Corporation uses customers served as its measure of activity. The company bases its budgets on the following information: Revenue should be $3.80 per customer served. Wages and salaries should be $38,800 per month plus $1.00 per customer served. Supplies should be $0.60 per customer served. Insurance should be $7,100 per month. Miscellaneous expenses should be $5,100 per month plus $0.30 per customer served.
The company reported the following actual results for January: Required:
Prepare a report showing the company's revenue and spending variances for January. Label each variance as favorable (F) or unfavorable (U).

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Definitions:

Blinking Eyes

The rapid opening and closing of the eyelid, a reflex mechanism to spread tears and protect the eye from irritants.

Modern Behaviorists

Psychologists who study behavior through the lens of learning principles, often focusing on observable behavior rather than internal mental processes.

Heredity

The transmission of genetic characteristics from parents to offspring.

Environmental Factors

External elements that can influence the development or behavior of individuals, including social, cultural, and physical aspects.