Cotillo Corporation Uses Customers Served as Its Measure of Activity

question 50

Essay

Cotillo Corporation uses customers served as its measure of activity. During December, the company budgeted for 29,000 customers, but actually served 27,000 customers. The company bases its budgets on the following information: Revenue should be $4.40 per customer served. Wages and salaries should be $33,300 per month plus $1.80 per customer served. Supplies should be $0.60 per customer served. Insurance should be $8,900 per month. Miscellaneous expenses should be $4,600 per month plus $0.10 per customer served. The company reported the following actual results for December:
Required:
Prepare the company's flexible budget performance report for December. Label each variance as favorable (F) or unfavorable (U).

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Definitions:

Individual Differences

Variations among individuals in their psychological traits, behaviors, and physiological responses.

Epigenetic Marks

Chemical modifications to DNA and histone proteins that regulate gene activity without altering the DNA sequence, affecting how cells read genes.

Behavior Geneticists

Scientists who study the role of genetic and environmental influences on behavior.

Reproductive Capacities

The biological capability of individuals or species to produce offspring, involving various physiological and genetic factors.