Mieras Corporation Uses Customers Served as Its Measure of Activity

question 21

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:

Weekly Timesheet

A record used to track the number of hours worked by an employee or contractor in a week.

Process Payroll Forms

The procedure of completing and submitting required documents for employee compensation and tax reporting.

Pay Payroll Liabilities

The process of fulfilling the company's obligation to pay net payroll and associated taxes and benefits as they become due.

Enter Time

The act of recording the amount of time spent on various tasks, often used in professional settings for billing or project management.