Brandewie Corporation Bases Its Budgets on the Activity Measure Customers

question 122

Essay

Brandewie Corporation bases its budgets on the activity measure customers served.During May,the company planned to serve 38,000 customers,but actually served 33,000 customers.Revenue is $2.80 per customer served.Wages and salaries are $28,800 per month plus $0.80 per customer served.Supplies are $0.50 per customer served.Insurance is $6,800 per month.Miscellaneous expenses are $5,800 per month plus $0.30 per customer served.
Required:
Prepare a report showing the company's activity variances for May.Indicate in each case whether the variance is favorable (F)or unfavorable (U).

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Definitions:

Morale

Morale is the capacity of a group's members to maintain belief in an institution or goal, particularly in the face of opposition or hardship.

Stereotype

A widely held but fixed and oversimplified image or idea of a particular type of person or thing.

Generalized Belief

A widely held opinion or conviction that is not specific to a particular instance but applies across many situations.

Group Polarization

The tendency for a group to make decisions that are more extreme than the initial inclination of its members after discussing an issue.