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varcoe Corporation bases its budgets on the activity measure customers served. During September, the company planned to serve 30,500 customers, but actually served 25,500 customers. Revenue is $3.81 per customer served. Wages and salaries are $34,200 per month plus $1.21 per customer served. Supplies are $0.51 per customer served. Insurance is $8,400 per month. Miscellaneous expenses are $6,500 per month plus $0.21 per customer served.

varcoe Corporation bases its budgets on the activity measure customers served. During September, the company planned to serve 30,500 customers, but actually served 25,500 customers. Revenue is $3.81 per customer served. Wages and salaries are $34,200 per month plus $1.21 per customer served. Supplies are $0.51 per customer served. Insurance is $8,400 per month. Miscellaneous expenses are $6,500 per month plus $0.21 per customer served.

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 10CE: Coral Seas Jewelry Company makes and sells costume jewelry. For the coming year, Coral Seas expects...
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Varcoe Corporation bases its budgets on the activity measure customers served. During September, the company planned to serve 30,500 customers, but actually served 25,500 customers. Revenue is $3.81 per customer served. Wages and salaries are $34,200 per month plus $1.21 per customer served. Supplies are $0.51 per customer served. Insurance is $8,400 per month. Miscellaneous expenses are $6,500 per month plus $0.21 per customer served. Required: Prepare a report showing the company's activity variances for September. Indicate in each case whether the variance is favorable (F) or unfavorable (U). (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 and enter any losses with a minus sign.) Varcoe Corporation Activity Variances For the Month Ended September 30 Flexible Budget Planning Budget Activity Variances Customers served 25,500 30,500 Revenue Expenses: Wages and salaries Supplies Insurance Miscellaneous expense Total expense Net operating income (loss)
Transcribed Image Text:Varcoe Corporation bases its budgets on the activity measure customers served. During September, the company planned to serve 30,500 customers, but actually served 25,500 customers. Revenue is $3.81 per customer served. Wages and salaries are $34,200 per month plus $1.21 per customer served. Supplies are $0.51 per customer served. Insurance is $8,400 per month. Miscellaneous expenses are $6,500 per month plus $0.21 per customer served. Required: Prepare a report showing the company's activity variances for September. Indicate in each case whether the variance is favorable (F) or unfavorable (U). (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 and enter any losses with a minus sign.) Varcoe Corporation Activity Variances For the Month Ended September 30 Flexible Budget Planning Budget Activity Variances Customers served 25,500 30,500 Revenue Expenses: Wages and salaries Supplies Insurance Miscellaneous expense Total expense Net operating income (loss)
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