Vangemert Corporation Uses Customers Served as Its Measure of Activity

question 283

Essay

Vangemert Corporation uses customers served as its measure of activity.During June, the company budgeted for 22, 000 customers, but actually served 25, 000 customers.The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served:
Revenue: $5.30q
Wages and salaries: $35, 400 + $1.90q
Supplies: $0.70q
Insurance: $9, 600
Miscellaneous expense: $5, 000 + $0.10q
The company reported the following actual results for June: Required:
Prepare a report showing the company's revenue and spending variances for June.Label each variance as favorable (F)or unfavorable (U).

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Definitions:

Wealthier

Possessing a higher amount of financial resources, assets, or material wealth compared to others.

Occupational Segregation

The division of jobs and professions along demographic lines, such as gender, ethnicity, or race, leading to inequality and disparity in the workplace.

Upward Mobility

Movement of a person from an occupation lower in prestige and income to one higher in prestige and income.

Gender

A social construct that refers to the roles, behaviors, activities, and attributes that a given society considers appropriate for men and women.