Shaak Corporation uses customers served as its measure of activity. The company bases its budgets on the following information: Revenue should be $3.20 per customer served. Wages and salaries should be $21,000 per month plus $0.80 per customer served. Supplies should be $0.70 per customer served. Insurance should be $5,300 per month. Miscellaneous expenses should be $3,100 per month plus $0.10 per customer served.The company reported the following actual results for October:
Required:Prepare a report showing the company's revenue and spending variances for October. Label each variance as favorable (F) or unfavorable (U).

Question

Shaak Corporation uses customers served as its measure of activity. The company bases its budgets on the following information: Revenue should be $3.20 per customer served. Wages and salaries should be $21,000 per month plus $0.80 per customer served. Supplies should be $0.70 per customer served. Insurance should be $5,300 per month. Miscellaneous expenses should be $3,100 per month plus $0.10 per customer served.The company reported the following actual results for October:
  Required:Prepare a report showing the company's revenue and spending variances for October. Label each variance as favorable (F) or unfavorable (U).

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The Answer of Shaak Corporation uses customers served as its measure of activity. The company bases its budgets on the following information: Revenue should be $3.20 per customer served. Wages and salaries should be $21,000 per month plus $0.80 per customer served. Supplies should be $0.70 per customer served. Insurance should be $5,300 per month. Miscellaneous expenses should be $3,100 per month plus $0.10 per customer served.The company reported the following actual results for October:
  Required:Prepare a report showing the company's revenue and spending variances for October. Label each variance as favorable (F) or unfavorable (U).

Shaak Corporation Uses Customers Served as Its Measure of Activity