Lakey Corporation uses customers served as its measure of activity. During July, the company budgeted for 33,000 customers, but actually served 34,000 customers. The company has provided the following data concerning the formulas used in its budgeting and its 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

Lakey Corporation uses customers served as its measure of activity. During July, the company budgeted for 33,000 customers, but actually served 34,000 customers. The company has provided the following data concerning the formulas used in its budgeting and its 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 Lakey Corporation uses customers served as its measure of activity. During July, the company budgeted for 33,000 customers, but actually served 34,000 customers. The company has provided the following data concerning the formulas used in its budgeting and its 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).

Lakey Corporation Uses Customers Served as Its Measure of Activity