Camcam Corporation Uses Customers Served as Its Measure of Activity

question 215

Essay

Camcam Corporation uses customers served as its measure of activity.During July, the company budgeted for 26, 000 customers, but actually served 30, 000 customers.The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served:
Revenue: $4.90q
Wages and salaries: $34, 400 + $1.60q
Supplies: $1.00q
Insurance: $8, 500
Miscellaneous expense: $5, 600 + $0.20q
The company reported the following actual results for July: Required:
Prepare the company's flexible budget performance report for July.Label each variance as favorable (F)or unfavorable (U).

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Definitions:

Positive Reinforcement

A method in behavioral psychology where a desirable stimulus is added to encourage the repetition of a particular behavior.

Brain Size

The physical measurement or volume of the brain, often considered in relation to body size or intelligence.

Intelligence

The capacity for learning, reasoning, understanding, and similar forms of mental activities; aptitude in grasping truths, relationships, facts, meanings, etc.

Language Ability

The capacity to understand, produce, and use complex systems of communication, particularly human languages.