Hertzler Corporation Uses Customers Served as Its Measure of Activity

question 237

Essay

Hertzler Corporation uses customers served as its measure of activity.During November,the company budgeted for 33,000 customers,but actually served 34,000 customers.The company uses the following revenue and cost formulas in its budgeting,where q is the number of customers served:

Revenue: $3.20q
Wages and salaries: $26,600 + $1.20q
Supplies: $0.40q
Insurance: $7,900
Miscellaneous: $6,400 + $0.10q
The company reported the following actual results for November: Required:
Prepare a report showing the company's revenue and spending variances for November.Label each variance as favorable (F)or unfavorable (U).

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Definitions:

Duodenocolic Reflexes

Reflexes that relate the function of the duodenum to the motility of the colon, aiding in digestion.

Peristalsis

A succession of wave-like contractions in muscles that push food through the digestive system.

Gallbladder

A small, pear-shaped organ located beneath the liver, which stores and concentrates bile produced by the liver.

Bile

A digestive fluid produced by the liver and stored in the gallbladder, that aids in the digestion and absorption of fats in the small intestine.