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:

Lateral Communications

the exchange of information or ideas between individuals or groups at the same level of an organizational hierarchy.

Richest Communication

implies the most effective and nuanced form of communication, often involving multiple channels that provide immediate feedback, such as face-to-face conversations.

Posted Notice

A public announcement or warning that is displayed physically or digitally in a conspicuous place.

Telecommuting

The practice of working from a remote location, outside of a traditional office environment, often facilitated by digital communication tools.