nhing budget August. Its budgeted revenue per serving drivers-number of servings and number of labor-hours. The company expects to sell 10,800 servings and to staff 700 employee abor-hours in August. Data concerning the company's cost formulas are shown below: Ingredients expense Salaries and wages expense Franchise fee Fixed Cost Cost per Cost per Per Month Labor-Hour $ 7,000 $ 8.00 Credit card processing fees Utilities expense $300 Rent expense $ 3,000 Equipment depreciation expense $1,750 Other expenses $ 4,200 Serving $ 1.25 cost $ 0.25 $ 0.09 $ 0.02 In August, the company actually sold 11,200 servings of ice cream and staffed 780 employee labor-hours. It's budgeted revenue per serving is $5.00. Required: Calculate the activity variances for August. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.

nhing budget August. Its budgeted revenue per serving drivers-number of servings and number of labor-hours. The company expects to sell 10,800 servings and to staff 700 employee abor-hours in August. Data concerning the company's cost formulas are shown below: Ingredients expense Salaries and wages expense Franchise fee Fixed Cost Cost per Cost per Per Month Labor-Hour $ 7,000 $ 8.00 Credit card processing fees Utilities expense $300 Rent expense $ 3,000 Equipment depreciation expense $1,750 Other expenses $ 4,200 Serving $ 1.25 cost $ 0.25 $ 0.09 $ 0.02 In August, the company actually sold 11,200 servings of ice cream and staffed 780 employee labor-hours. It's budgeted revenue per serving is $5.00. Required: Calculate the activity variances for August. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 3PB: TIB makes custom guitars and prepared the following sales budget for the second quarter It also has...

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