Vieyra Corporation Uses Customers Served as Its Measure of Activity

question 273

Essay

Vieyra Corporation uses customers served as its measure of activity. During November, the company budgeted for 36,000 customers, but actually served 39,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served:
Revenue: $2.50q
Wages and salaries: $21,500 + $0.70q
Supplies: $0.40q
Insurance: $6,100
Miscellaneous: $3,700 + $0.40q
The company reported the following actual results for November: Required:
Prepare the company's flexible budget performance report for November. Label each variance as favorable (F) or unfavorable (U).

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Definitions:

Stress Response

The body's reaction to perceived threats or challenges, involving physiological and psychological adaptations to cope with stress.

Sympathetic Nervous System

A branch of the autonomic nervous system that activates what is often termed the fight or flight response during times of stress.

Central Nervous System

Comprises the brain and spinal cord, responsible for processing and sending messages throughout the body.

Peripheral Nervous System

The part of the nervous system that consists of the nerves and ganglia outside of the brain and spinal cord, responsible for connecting the CNS to limbs and organs.