Vangemert Corporation Uses Customers Served as Its Measure of Activity

question 109

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:

First Generation

Referring to the earliest stage or version of a product, technology, or system, often characterized by being the initial attempt or introductory iteration.

Mobile Networks

Wireless communication networks that enable devices to connect to the internet and communicate with each other without fixed connections.

Rogue Access Point

An unauthorized access point to a wireless network, introduced without the network administrator's consent, potentially compromising network security.

Wi-Fi

A wireless technology that allows electronic devices to connect to a local area network (LAN) using radio waves, providing internet access.