Satoe Corporation Uses Customers Served as Its Measure of Activity

question 330

Essay

Satoe Corporation uses customers served as its measure of activity.During April,the company budgeted for 25,000 customers,but actually served 23,000 customers.The company has provided the following data concerning the formulas used in its budgeting and its actual results for April:
Data used in budgeting: Actual results for April: Required:
Prepare a report showing the company's revenue and spending variances for April.Label each variance as favorable (F)or unfavorable (U).

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Definitions:

Qualifying Leads

The process of assessing potential clients to determine if they have the need, authority, and resources to purchase a product or service.

Goodwill

An intangible asset that arises when a company acquires another business for more than the fair value of its assets.

Buying Decision

The process and final determination made by consumers or organizations when choosing among different products, services, or suppliers.

Goodwill

An intangible asset that represents the value of a company's brand name, customer relationships, employee morale, and other factors that improve a company's business prospects.