Varcoe Corporation bases its budgets on the activity measure customers served. During September, the company planned to serve 37,500 customers, but actually served 32,500 customers. Revenue is $3.95 per customer served. Wages and salaries are $35,600 per month plus $1.35 per customer served. Supplies are $0.65 per customer served. Insurance is $9,800 per month. Miscellaneous expenses are $7,900 per month plus $0.35 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). 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 and enter any losses with a minus sign. Varcoe Corporation Activity Variances For the Month Ended September 30 Customers served Revenue Expenses: Wages and salaries Supplies Insurance Miscellaneous expense Total expense Net operating income (loss) Flexible Budget Planning Budget Activity Variances 32,500 37,500 U U

Varcoe Corporation bases its budgets on the activity measure customers served. During September, the company planned to serve 37,500 customers, but actually served 32,500 customers. Revenue is $3.95 per customer served. Wages and salaries are $35,600 per month plus $1.35 per customer served. Supplies are $0.65 per customer served. Insurance is $9,800 per month. Miscellaneous expenses are $7,900 per month plus $0.35 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). 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 and enter any losses with a minus sign. Varcoe Corporation Activity Variances For the Month Ended September 30 Customers served Revenue Expenses: Wages and salaries Supplies Insurance Miscellaneous expense Total expense Net operating income (loss) Flexible Budget Planning Budget Activity Variances 32,500 37,500 U U

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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