Camcam Corporation uses customers served as its measure of activity.During July,the company budgeted for 26,000 customers,but actually served 30,000 customers.The company uses the following revenue and cost formulas in its budgeting,where q is the number of customers served:
Revenue: $4.90q
Wages and salaries: $34,400 + $1.60q
Supplies: $1.00q
Insurance: $8,500
Miscellaneous expense: $5,600 + $0.20q
The company reported the following actual results for July: Required:
Prepare a report showing the company's revenue and spending variances for July.Label each variance as favorable (F)or unfavorable (U).

Question

Camcam Corporation uses customers served as its measure of activity.During July,the company budgeted for 26,000 customers,but actually served 30,000 customers.The company uses the following revenue and cost formulas in its budgeting,where q is the number of customers served:
Revenue: $4.90q
Wages and salaries: $34,400 + $1.60q
Supplies: $1.00q
Insurance: $8,500
Miscellaneous expense: $5,600 + $0.20q
The company reported the following actual results for July:  Required:
Prepare a report showing the company's revenue and spending variances for July.Label each variance as favorable (F)or unfavorable (U).

Quizplus · Accepted Answer

The Answer of Camcam Corporation uses customers served as its measure of activity.During July,the company budgeted for 26,000 customers,but actually served 30,000 customers.The company uses the following revenue and cost formulas in its budgeting,where q is the number of customers served:
Revenue: $4.90q
Wages and salaries: $34,400 + $1.60q
Supplies: $1.00q
Insurance: $8,500
Miscellaneous expense: $5,600 + $0.20q
The company reported the following actual results for July:  Required:
Prepare a report showing the company's revenue and spending variances for July.Label each variance as favorable (F)or unfavorable (U).

Camcam Corporation Uses Customers Served as Its Measure of Activity