Guy Corporation Uses Customers Served as Its Measure of Activity

question 247

Essay

Guy Corporation uses customers served as its measure of activity. During January, the company budgeted for 32,000 customers, but actually served 35,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served:
Revenue: $4.20q
Wages and salaries: $33,900 + $1.40q
Supplies: $0.60q
Insurance: $10,000
Miscellaneous: $7,000 + $0.40q
The company reported the following actual results for January:
Required:
Prepare the company's flexible budget performance report for January. Label each variance as favorable (F) or unfavorable (U).

Appreciate the benefits and challenges of teamwork in organizational settings.

Understand the concept of social loafing and measures to mitigate it within teams.

Become familiar with the structure and purpose of various specialized teams and groups, such as task forces and quality circles.

Explore strategies for managing and leading teams effectively, including virtual teams and self-managing work teams.

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Definitions:

U-1 Measure

A specific metric for unemployment that counts individuals who have been unemployed for 15 weeks or longer, indicating long-term unemployment.

U-6 Measure

A comprehensive unemployment rate that includes those who are not actively looking for work, those working part-time but seeking full-time employment, and other marginally attached workers, in addition to the unemployed who are actively looking for work.

Marginally Attached Workers

Individuals who are not in the labor force, wishing to be employed and have looked for a job in the recent past but are not currently looking for work.

Labor-Force Participation

The ratio or percentage of the working-age population that is actively employed or seeking employment.