Fuquay Corporation Uses Customers Served as Its Measure of Activity

question 159

Essay

Fuquay Corporation uses customers served as its measure of activity. The company bases its budgets on the following information: Revenue should be $4.80 per customer served. Wages and salaries should be $26,500 per month plus $1.70 per customer served. Supplies should be $0.90 per customer served. Insurance should be $7,100 per month. Miscellaneous expenses should be $4,700 per month plus $0.20 per customer served.
The company reported the following actual results for May:
Required:
Prepare a report showing the company's revenue and spending variances for May. Label each variance as favorable (F) or unfavorable (U).

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Definitions:

Job Satisfaction

The level of contentment a person feels regarding their job, which can influence their performance and overall wellbeing.

Extrinsic Rewards

Benefits provided by external factors or agents to motivate behavior, such as money, praise, or awards.

Intrinsic Rewards

Satisfaction or pleasure derived from the activity itself rather than from external rewards or outcomes.

Unique Phases

Distinct periods within a process or lifecycle that are characterized by specific features or events.