Vieyra Corporation Uses Customers Served as Its Measure of Activity

question 174

Essay

Vieyra Corporation uses customers served as its measure of activity.During November,the company budgeted for 36,000 customers,but actually served 39,000 customers.The company uses the following revenue and cost formulas in its budgeting,where q is the number of customers served:

Revenue: $2.50q
Wages and salaries: $21,500 + $0.70q
Supplies: $0.40q
Insurance: $6,100
Miscellaneous: $3,700 + $0.40q

The company reported the following actual results for November: Required:
Prepare the company's flexible budget performance report for November.Label each variance as favorable (F)or unfavorable (U).

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Definitions:

Three-Letter Sequences

In genetics, sequences of three nucleotides (triplets) in DNA or RNA that code for specific amino acids, the building blocks of proteins.

mRNA

Messenger RNA, a form of RNA responsible for transporting genetic instructions from DNA to the ribosome, the site of protein synthesis.

tRNA

Transfer RNA; a type of RNA that helps decode a messenger RNA (mRNA) sequence into a protein during protein synthesis.

rRNA

Ribosomal RNA, a type of RNA that, together with proteins, makes up the ribosome, the site of protein synthesis in cells.