Mieras Corporation Uses Customers Served as Its Measure of Activity

question 234

Essay

Mieras Corporation uses customers served as its measure of activity. During January, the company budgeted for 37,000 customers, but actually served 36,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served:
Revenue: $2.80q
Wages and salaries: $22,800 + $0.90q
Supplies: $0.50q
Insurance: $7,500
Miscellaneous: $3,800 + $0.30q
The company reported the following actual results for January:
Required:
Prepare a report showing the company's revenue and spending variances for January. Label each variance as favorable (F) or unfavorable (U).

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Definitions:

Actualization

The realization or fulfillment of one's talents and potentialities, often considered as a drive or need present in everyone.

Underprivileged Children

Children who lack the economic, social, and educational advantages of their peers, often leading to disparities in health, achievement, and opportunities.

Delinquent

Refers to a minor who engages in behavior against the law or conducts themselves in a criminal manner.

Fundamentalist Upbringing

Being raised in a religious environment that adheres strictly to the foundational principles of the faith, often with literal interpretations of sacred texts.