Zindell Corporation Bases Its Budgets on the Activity Measure Customers

question 38

Essay

Zindell Corporation bases its budgets on the activity measure customers served.During December,the company planned to serve 21,000 customers,but actually served 19,000 customers.The company uses the following revenue and cost formulas in its budgeting,where q is the number of customers served:

Revenue: $3.60q
Wages and salaries: $21,300 + $1.10q
Supplies: $0.70q
Insurance: $6,400
Miscellaneous: $3,200 + $0.20q

Required:
Prepare a report showing the company's activity variances for December.Indicate in each case whether the variance is favorable (F)or unfavorable (U).

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Definitions:

Glycogenolysis

Glycogenolysis is the metabolic process of breaking down glycogen into glucose, which serves as an important energy source for the body during physical activity or between meals.

Gluconeogenesis

The metabolic process by which organisms produce glucose from non-carbohydrate substrates such as amino acids and glycerol, especially significant during periods of fasting or intense exercise.

Glycogen Synthesis

The process of converting glucose into glycogen, which is stored in the liver and muscle cells for energy.

Pancreatic Islets

Clusters of cells in the pancreas that produce hormones like insulin and glucagon, playing a key role in glucose metabolism.