Crovo Corporation uses customers served as its measure of activity. During Decem
ID: 2380305 • Letter: C
Question
Crovo Corporation uses customers served as its measure of activity. During December, the company budgeted for 38,000 customers, but actually served 40,000 customers. The company has provided the following data concerning the formulas used in its budgeting and its actual results for December:
Data used in budgeting:
Actual results for December:
Required:
Prepare a report showing the company's revenue and spending variances for December. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)
Crovo Corporation uses customers served as its measure of activity. During December, the company budgeted for 38,000 customers, but actually served 40,000 customers. The company has provided the following data concerning the formulas used in its budgeting and its actual results for December:
Explanation / Answer
ACTUAL
FLEX
VARIANCE
revenue
101500
104000
2.60 X40 000
2500 U
Wages and salries
52000
52300
(0.80 X40 000 )20300
300 F
supplies
18100
20000
0.5 X40 000
1900F
insurance
9400
7500
7500
1900U
miscel
18100
15700
0.30 X40000 +3700
2400U
Total expense
97600
95500
2100U
NI
3900
8500
4600U
ACTUAL
FLEX
VARIANCE
revenue
101500
104000
2.60 X40 000
2500 U
Wages and salries
52000
52300
(0.80 X40 000 )20300
300 F
supplies
18100
20000
0.5 X40 000
1900F
insurance
9400
7500
7500
1900U
miscel
18100
15700
0.30 X40000 +3700
2400U
Total expense
97600
95500
2100U
NI
3900
8500
4600U
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