Fuquay Corporation uses customers served as its measure of activity. The company bases its budgets on the following information: Revenue should be $4.80 per customer served. Wages and salaries should be $26,500 per month plus $1.70 per customer served. Supplies should be $0.90 per customer served. Insurance should be $7,100 per month. Miscellaneous expenses should be $4,700 per month plus $0.20 per customer served.
The company reported the following actual results for May:
Required:
Prepare a report showing the company's revenue and spending variances for May. Label each variance as favorable (F) or unfavorable (U).

Question

Fuquay Corporation uses customers served as its measure of activity. The company bases its budgets on the following information: Revenue should be $4.80 per customer served. Wages and salaries should be $26,500 per month plus $1.70 per customer served. Supplies should be $0.90 per customer served. Insurance should be $7,100 per month. Miscellaneous expenses should be $4,700 per month plus $0.20 per customer served.
The company reported the following actual results for May:  
Required:
Prepare a report showing the company's revenue and spending variances for May. Label each variance as favorable (F) or unfavorable (U).

Quizplus · Accepted Answer

The Answer of Fuquay Corporation uses customers served as its measure of activity. The company bases its budgets on the following information: Revenue should be $4.80 per customer served. Wages and salaries should be $26,500 per month plus $1.70 per customer served. Supplies should be $0.90 per customer served. Insurance should be $7,100 per month. Miscellaneous expenses should be $4,700 per month plus $0.20 per customer served.
The company reported the following actual results for May:  
Required:
Prepare a report showing the company's revenue and spending variances for May. Label each variance as favorable (F) or unfavorable (U).

Fuquay Corporation Uses Customers Served as Its Measure of Activity