Guy Corporation Uses Customers Served as Its Measure of Activity

question 52

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).

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Definitions:

Stages of Development

The concept of progressive phases individuals go through during their psychological, physical, or social maturation process.

Interpersonal Attraction

The force that draws individuals together, leading to friendships, romantic relationships, or other forms of social connections.

Cohesion

The degree to which members of a group are connected to each other, fostering unity and a sense of belonging.

Punctuated Equilibrium Model

A theory in evolutionary biology and political science suggesting that changes occur in rapid, significant bursts followed by periods of stability.