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).

---

Definitions:

Somatic Symptom Disorders

A group of psychological disorders in which the person experiences physical symptoms that are not fully explained by a general medical condition, leading to significant distress and impairment.

Psychosomatic

Pertaining to physical symptoms that are caused or significantly influenced by emotional factors.

Generalized Anxiety Disorder

A mental health disorder characterized by persistent and excessive worry about various aspects of life, often imagining worst-case scenarios.

Apprehensive

Feeling anxious or fearful about the future or something in particular.