Wartenberg Corporation uses customers served as its measure of activity. The company bases its budgets on the following information: Revenue should be $3.80 per customer served. Wages and salaries should be $38,800 per month plus $1.00 per customer served. Supplies should be $0.60 per customer served. Insurance should be $7,100 per month. Miscellaneous expenses should be $5,100 per month plus $0.30 per customer served.
The company reported the following actual results for January: Required:
Prepare a report showing the company's revenue and spending variances for January. Label each variance as favorable (F) or unfavorable (U).

Question

Wartenberg Corporation uses customers served as its measure of activity. The company bases its budgets on the following information: Revenue should be $3.80 per customer served. Wages and salaries should be $38,800 per month plus $1.00 per customer served. Supplies should be $0.60 per customer served. Insurance should be $7,100 per month. Miscellaneous expenses should be $5,100 per month plus $0.30 per customer served.
The company reported the following actual results for January:  Required:
Prepare a report showing the company's revenue and spending variances for January. Label each variance as favorable (F) or unfavorable (U).

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The Answer of Wartenberg Corporation uses customers served as its measure of activity. The company bases its budgets on the following information: Revenue should be $3.80 per customer served. Wages and salaries should be $38,800 per month plus $1.00 per customer served. Supplies should be $0.60 per customer served. Insurance should be $7,100 per month. Miscellaneous expenses should be $5,100 per month plus $0.30 per customer served.
The company reported the following actual results for January:  Required:
Prepare a report showing the company's revenue and spending variances for January. Label each variance as favorable (F) or unfavorable (U).

Wartenberg Corporation Uses Customers Served as Its Measure of Activity